Paytm Shares Dip After ED Issues FEMA Violation Notice

Paytm's parent company, One97 Communications, saw its shares drop over 2% on March 3rd following a show cause notice from the Enforcement Directorate (ED). The notice alleges violations of the Foreign Exchange Management Act (FEMA) related to its subsidiaries, Little Internet and Nearbuy India, during acquisitions between 2015 and 2019. 1 The ED's action has impacted investor confidence, leading to the stock's decline.