Paytm is being questioned by the BSE about its stock price decline.

The Bombay Stock Exchange (BSE) has asked Paytm for an explanation as to why its stock price has been steadily declining over the last few days. Last week, Paytm’s stock took a beating after the Reserve Bank of India (RBI) prohibited Paytm Payments Bank from enrolling new subscribers. On Tuesday, the stock continued to fall, closing nearly 4% lower at Rs 543.90 on the BSE.

The company’s stock price has reached an all-time low. When Paytm went public on the stock exchanges last November, the issue price was Rs 2,150.

“On March 22, 2022, the Exchange requested clarity from One97 Communications Ltd (Paytm’s parent company) with regard to significant price movement, in order to make sure that investors have the most up-to-date relevant information about the company and to inform the market so that investors’ interests are safeguarded,” BSE said during a note on Tuesday evening.

When a stock loses a considerable amount of value, the BSE normally demands clarity, and Paytm shares now are trading at about 74% of their offer price. The RBI barred Paytm Payments Bank from onboarding new users last week due to compliance issues and ordered an IT audit. Vijay Shekhar Sharma, the creator of Paytm, controls 51% of Paytm Payments Bank, while One97 Communications holds the balance.