India’s stock exchanges have cut the daily share trading limits for digital payments firm Paytm to 10%, from 20%, after a $2 billion rout in the stock following a regulatory crackdown on the company’s banking unit.

Paytm’s market value crashed to $3.7 billion after it lost $2 billion on Mumbai bourses this week, with the stock losing 20%.(Reuters Photo)

The new 10% limits will be applicable from Monday, the Bombay Stock Exchange and the National Stock Exchange said on their websites.

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The Indian central bank told Paytm’s banking unit earlier this week to stop accepting fresh deposits in its accounts or popular wallets from March, a move that has far-reaching consequences for how the country’s most popular digital payments app Paytm – which relies on the bank – operates.

Paytm’s market value crashed to $3.7 billion after it lost $2 billion on Mumbai bourses this week, with the stock losing 20% – its daily maximum at that time – on both Thursday and Friday.

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