Paytm shares open lower after SVP-Business resigns effective March 31
Upstox
2 min read • Updated: March 26, 2024, 9:55 AM
Summary
After five years of working as SVP-Business with Paytm, Praveen Sharma submitted his resignation. The disclosure was made by the company on March 23, noting that Sharma stepped down as he "plans to pursue other opportunities". This comes days after Paytm's banking arm came under the radar of the regulatory authorities.
Paytm shares opened lower at the stock markets on Tuesday, March 26, in the first trading session following the news of the exit of its Senior Vice President - Business, Praveen Sharma.
The company informed in an exchange filing on Sunday, March 23, that Sharma has tendered his resignation. This is the second exit within the higher management after its payment bank came under regulatory radar.
At 9:30 am today, the shares were valued at Rs 400.5 on the NSE, down by around 1% as against the previous day's close.
Sharma, in his resignation letter, said he has stepped down with plans to "pursue other opportunities". He joined the company in 2019 after completing a stint at Google for 9 years, where he focused on India and Asia Pacific regions.
The move comes weeks after the RBI barred Paytm Payments Bank from accepting deposits and distributing credits from February 29 onwards. The deadline was later extended to March 15. The RBI cited a series of non-compliance issues within the payments bank business as the reason behind the curbs.
Before the deadline of March 15, Paytm's parent company secured a licence from NPCI as a third-party application provider under the multi-bank model. Axis Bank, HDFC Bank, State Bank of India, and Yes Bank agreed to act as payment system providers for Paytm.
Notably, Paytm's stock is expected to remain focused after the exit of Sharma over the weekend. In the previous week, the shares of Paytm rallied by 8.5% to close at ₹403.5 a piece.