© Reuters. FILE PHOTO: Paytm app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
NEW DELHI (Reuters) – India’s stock exchanges have cut the daily share trading limits for digital payments firm Paytm to 10%, from 20%, after a $2 billion rout in the stock following a regulatory crackdown on the company’s banking unit.
The new 10% limits will be applicable from Monday, the Bombay Stock Exchange and the National Stock Exchange said on their websites.
The Indian central bank told Paytm’s banking unit earlier this week to stop accepting fresh deposits in its accounts or popular wallets from March, a move that has far-reaching consequences for how the country’s most popular digital payments app Paytm – which relies on the bank – operates.
Paytm’s market value crashed to $3.7 billion after it lost $2 billion on Mumbai bourses this week, with the stock losing 20% – its daily maximum at that time – on both Thursday and Friday.