One 97 Communications Ltd (Paytm) shares were trading 5% higher on Tuesday amid high turnover, while the broader market was weak, with three stocks falling on BSE for every two that rose.

At its meeting today, the company's nomination and compensation committee authorized the issuance of 109,995 stock options to qualified employees under the One 97 Employees Stock Option Scheme 2019 (ESOP 2019), Paytm notified stock exchanges. It also recorded 4,11,931 lapsed stock options.

The stock was trading 5.34% higher at Rs 700.70 on the BSE. It reached a high of Rs 700 on NSE. The counter saw 62,26,150 shares traded on the NSE, with a total turnover of Rs 427.60 crore.

The online payment service provider Paytm recently made headlines when it told the BSE and NSE that it had received a show-cause notice worth Rs 611.17 crore from the Directorate of Enforcement regarding alleged violations of specific provisions of the Foreign Exchange Management Act, 1999 (FEMA). It insisted that the alleged violations pertained to specific investment transactions involving OCL, LIPL, and NIPL. The case involved the acquisition of two subsidiaries, Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL), both of which were previously owned by Groupon, as well as certain Directors and Officers, between 2015 and 2019.

"Certain alleged contraventions attributable to two acquired companies - Little Internet Pvt Limited and NearBuy India Pvt Ltd pertain to a period when these were not subsidiaries of the company," Paytm stated, adding that the matter has no impact on Paytm's services to its customers and merchants, and that all of its services are fully operational.

Last month, Paytm told Kotak Institutional Equities that its primary focus was on payments and upselling financial services to payment users. Every quarter, the company processed a GMP of Rs 5 lakh crore from consumers to merchants using UPI and cards. Of this, 80% is processed via UPI, which has significantly reduced debit card usage, with the remaining 20% processed via credit cards.

According to Paytm, the market share of payment devices in the offline segment is 90% sound boxes, 10% card machines. On the Rs 5 lakh crore of GMP, 5-6 basis points of the transaction are received as revenue after Paytm pays the bank. The soundbox generates one dollar per month in revenue from each merchant. UPI's only source of income is government incentives.

Meanwhile, Paytm announced today that its remuneration Committee has considered and approved amendments to the One 97 Employees Stock Option Scheme 2019, subject to the approval of the company's members, in accordance with the applicable provisions of the Companies Act, 2013, read with rules thereunder, and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

According to the announcement, "These amendments, among other things, support performance-linked rewards and long-term value creation, which is consistent with industry standards and the Company's vision of acknowledging contributions and fostering sustainable growth."