Paytm Shares Rebound After Initial Drop Amid ED Notice Over Alleged FEMA Rule Violations Involving Rs 611 Crore

Shares of One97 Communications, the owner of Paytm, rebounded to close nearly 2% higher after initially dropping 4% following reports of a notice from the Enforcement Directorate (ED) for alleged violations of FEMA rules. These allegations relate to investment transactions involving Paytm and its subsidiaries, Little Internet and Nearbuy, before their acquisition by Paytm in 2017. The notice involves transactions totaling over Rs 611 crore. Paytm stated that the matter is being addressed legally and does not impact its services. The company is seeking legal advice to resolve the issue.