Paytm Faces Crypto Scam Allegations Amid Market Fluctuations

Shares of Paytm's parent company faced a significant drop after media reports suggested involvement in a crypto scam. Paytm has labeled these allegations as inaccurate, clarifying that the probe concerns third-party merchants, not the company or its subsidiaries. They urge investors to disregard unverified information.

Shares of One 97 Communications Ltd, the parent company of the Paytm brand, witnessed a sharp decline of almost 5% on Friday. The drop came amid media reports alleging that Paytm was under investigation for a crypto scam. However, the company has refuted these claims, stating they are 'factually incorrect and misleading'.

On the Bombay Stock Exchange (BSE), Paytm's shares fell 4.85% to close at Rs 807.75, with a daily low of Rs 773.90, marking an 8.84% drop at one point. Similarly, on the National Stock Exchange (NSE), shares dropped by 4.90% to settle at Rs 807.45, after hitting a trough at Rs 773.05 during intra-day trading.

The decline followed reports of an Enforcement Directorate probe and the freezing of Rs 500 crore related to a crypto scam inquiry. Paytm asserted, in its stock exchange filing, that they had not received any fresh queries from the ED, and emphasized that the probe involved third-party merchants, not the company itself.

(With inputs from agencies.)