Paytm shares look for direction as investors figure out implications of Vijay Shekhar Sharma's resignation
Vijay Shekhar Sharma's resignation as part-time non-executive chairman and board member at Paytm Payments Bank, Paytm shares today rallied 5% in the morning only to give up all the gains quickly in volatile trading as investors try to understand whether the restructuring of the board will help placate an angry RBI.
After two days of 5% upper circuits, the stock was trading just 1% higher in early trade.
«Finally, the ego has been let loose for a bigger goal. Vijay has taken the right move from a broader perspective. The new management will give a better image of the payments bank,» said market veteran Sanjiv Bhasin.
Hopeful that it is a matter of time before the regulatory issues fade away, Bhasin said the longer-term story of Paytm looks very strong and he remains an investor.
Last night, One 97 announced that its associate entity Paytm Payments Bank has reconstituted its board of directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal. They have recently joined as Independent Directors.
«OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee. The Company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman,» OCL
