Jio Financial Services has denied reports that it is in talks to acquire the wallet business of digital payments firm Paytm. In a statement to stock exchanges on Tuesday, the Mukesh Ambani-led financial services provider said it has not been in any negotiations regarding acquiring Paytms wallet operations.We have always made and will continue to make disclosures in compliance with our obligations, Jio Financial said, refuting claims made in media reports on Monday.The clarification comes after Jio Financial Services shares surged over 15% amid rumours that the Ambani firm was a frontrunner to take over Paytms wallet business. Paytm has been facing turmoil since the Reserve Bank of India barred its payments bank from conducting any banking activities beyond February 28th due to non-compliance with know-your-customer norms and other issues.A report in the Hindu Business Line claimed HDFC Bank and Jio Financial Services were top contenders looking to acquire Paytms wallet operations, with Jio also applying for approval to conduct mutual fund activities with BlackRock.However, Jio Financial Services has denied being in talks with Paytm. Jio Financial Services Ltd has not been in any negotiations for acquisition of the wallet business of Paytm, it said in its statement to exchanges.With KYC struggles worsening Paytms situation, analysts said the company has not been as aggressive in the wallet business in 2022. If valuations on the table were decent, the talks with Jio would have fructified much earlier, a source told Hindu Business Line.But Jio Financial Services has distanced itself from the speculation, clarifying it is fully compliant with disclosure obligations and has not held acquisition talks with Paytm. The denial leaves uncertainty around Paytms efforts to sell its wallet business amid intensifying regulatory troubles.
