Stock exchanges revise Paytm’s circuit limit to 5% from 10%; shares hit record low

Stock exchanges BSE and NSE have once again revised the circuit filter for One 97 Communications Ltd (Paytm) stock lower to 5% from 10% earlier. Paytm shares have been in a free-fall since RBI's restriction on Paytm Payments Bank. Earlier, exchanges had reduced the circuit limit for the Paytm shares to 10% from 20%

Circuit filter are a range provided for each index. It contains an upper limit and a lower circuit limit. The index cannot fall below the lower limit or climb above the upper limit. These limits are based on the previous day's closing price.

Paytm shares fall again

Meanwhile the Paytm shares fell to fresh record low on Thursday after it confirmed that it has received notices from the Enforcement Directorate. Shares of the company fell as much as 4.92% to hit fresh record low of Rs 325.30 apiece. The earlier all-time low of Rs 342.25 was hit on Feb. 14

Price band revision

The revision in price band comes a day after the Paytm shares locked at their 10% lower circuit limit. The price band has been revised from the existing levels with effect from February 15, 2024, BSE said.

Also Read: Paytm shares crash over 9% to hit fresh record low

On Wednesday the Paytm shares closed 10% lower at Rs 342.35. The Paytm stock has lost 55% of its market value since January 31, the day RBI put strict restrictions on Paytm Payments Bank.

In an exchange filing, the company said that it has over time been receiving notices and requisitions for information, documents, and explanations from the authorities—including the Enforcement Directorate.