Paytm Shares Nosedive After Regulatory Ban, CEO Arrest
NDTV
Paytm shares nosedived almost 13 percent on Monday after Indian regulators banned the payments platform from taking on new customers.
Paytm shares nosedived almost 13 percent Monday after Indian regulators banned the beleaguered payments platform from enrolling new customers and reports emerged that its founder was arrested for crashing into a police car.
The firm enjoyed India's biggest initial public offering four months ago, with the backing of Chinese tycoon Jack Ma's Ant Group and Warren Buffett's Berkshire Hathaway.
But it has since lost more than two-thirds of its market cap despite a commanding position in the local digital payments space, as investors fret over whether the perennial loss-maker will ever turn a profit.
India's central bank demanded Paytm immediately stop enrolling new customers on Friday and ordered an audit of its IT systems, citing "certain material supervisory concerns observed in the bank".
