Paytm stock turns positive after three-day rout

Paytm shareholders have lost as much as Rs 23,252 crore since the central bank last week ordered Paytm affiliate Paytm Payments Bank to wind down most of its business.

Bengaluru: Paytm shares rose on Tuesday, reversing a three-day rout triggered by a regulatory order to halt business at its banking unit that had cost shareholders around Rs 20,758 crore.

The stock had hit a record low early in the session after Reuters reported India's federal anti-fraud agency was investigating if platforms run by the company have been involved in violations of foreign exchange rules.

The stock fell as much as 9.9 per cent to a record low of 395 rupees on the National Stock Exchange before reversing course to last trade up 4.3 per cent at 457 rupees.

As of Monday, Paytm shareholders lost Rs 20,758 crore after the central bank last week ordered Paytm affiliate Paytm Payments Bank to wind down most of its business, including deposits, credit products and its popular digital wallets, by Feb. 29.

A Paytm spokesperson denied any violations of foreign exchange law, calling allegations "unfounded and factually incorrect." ($1 = 83.0325 Indian rupees)