India, June 12 -- Shares of Paytm parent One97 Communications tumbled as much as 10% to INR 864.40 during the early trade today following the finance ministry's clarification on reports about the possible introduction of a merchant discount rate (MDR) on unified payments interface (UPI) transactions.

The stock, after 8 sessions of consolidation followed by two sessions of a declining spree, witnessed negative investor sentiment today.

The finance ministry's clarification comes after it was reported yesterday that the Centre is mulling levying MDR on UPI transactions above INR 3,000.

"Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading. Such baseless and sensation-creati...