In response to the Reserve Bank of India’s (RBI) operational restrictions on Paytm Payments Bank Ltd. (PPBL) as a result of persistent non-compliance issues and serious supervisory concerns, the HSBC mutual fund (MF) fully withdrew its holdings of One 97 Communications from its actively managed funds on January 24. According to brokerage house Fisdom Research, Quant MF decreased exposure by 72.4 percent within the same period.
Shares of One 97 Communications fell by 55% on the NSE and BSE following the RBI’s intervention.
Before the recent fall since January 31, the MF industry’s shareholding climbed by 41% in January 2024 from December 2023, according to a recent note from Fisdom Research. According to the brokerage, the top three mutual funds with the most Paytm shares in their portfolios as of January 2024 are Nippon MF, Mirae Mutual Fund, and Motilal Oswal Mutual Fund.
Additionally, the brokerage said that the following mutual funds were not actively exposed to Paytm: Grow Mutual Fund, ICICI Mutual Fund, TATA Mutual Fund, SBI Mutual Fund, Edelweiss Mutual Fund, Kotak Mutual Fund, Bandhan Mutual Fund, and ICICI Mutual Fund.
At present, the MF industry’s exposure to Paytm stands at ₹3,384 crore. It did note, however, that in January 2024, 19 AMCs had no exposure to the stock.
