Why One 97 Communications, parent of Paytm, shares lost 4% in trade today?

One 97 Communications, parent of Paytm, shares slipped 4.3 per cent in trade on BSE, logging an intraday low at Rs 685 per share. The selling pressure in the stock came after the company received a show cause notice from the Enforcement Directorate (ED).

The company has allegedly violated the Foreign Exchange Management Act (Fema) involving aggregate transactions worth over Rs 611 crore related to the acquisition of its subsidiaries. Further, the violations pertain to the company’s acquisition of two subsidiaries—Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL), formerly Groupon—including certain directors and officers.