Shares of One 97 Communications - parent company of Paytm - rose over 12 percent on August 30, rallying past the Rs 600 level in trade, rising for a second day, on the back of government's nod for downstream investment in Paytm Payments Services.
Earlier, Paytm in a X post had also quoted PM Modi's appreciation for the innovations relating to QR codes and soundboxes in the fintech space, saying they were 'humbled by the opportunity' of pioneering QR code payments, along with Soundbox and card machines. "These technologies have built trust in mobile payments across every nook and corner of our nation among customers and merchant partners, and have set global benchmarks," Paytm wrote.
Read More: Paytm secures nod for downstream investment in Paytm Payments Services
The Reserve Bank of India (RBI) had rejected Paytm's PA licence permit application in November 2022 and instructed the company to re-apply with Press Note 3 compliance, under foreign direct investment norms. As per Press Note 3, the government had made its prior approval mandatory for investments from nations that share land borders with India. At the time of application rejection, China's Alibaba Group was the biggest stakeholder in the company.
Read More: What is behind the race for payment aggregator licences?
Over the past 3 months, Paytm stock has been trailing benchmark Nifty 50, down 27 percent, as against the latter's 9 percent surge.
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