Paytm shares rose 10% on Wednesday after media reports said the crisis-hit digital payments company’s CEO Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman and the Reserve Bank of India to discuss regulatory issues.

Shares of Paytm parent company One97 Communications rose to Rs 496.75 apiece on the BSE as of 9:31 am, up 10 per cent from the previous closing price of Rs 451.60. However, the level of Rs 496.75 is still well below where Paytm was before January 31, when the Reserve Bank of India (RBI) ordered Paytm Payments Bank to stop accepting its accounts and its recipients from March, citing regulatory concerns and non-regulatory reasons. New deposits in your digital wallet are welcome. Follow the rules.

Shares rose after reports of talks with government and central bank officials emerged on Tuesday.

“Discussions are ongoing with the Reserve Bank of India and the Finance Ministry to resolve regulatory issues and compliance issues,” a source with direct knowledge of the negotiations told Reuters on Tuesday.

Sources said the company has sought an extension to the February 29 deadline from the Reserve Bank of India and has been seeking clarification from the central bank on the transfer of licenses for its wallet business and digital highway tolling service Fatag.

“The fact that the CEO is meeting with regulators gives investors some confidence,” said Kranthi Bathini, equity strategist at WealthMills Securities.

“While major compliance issues remain and it’s unclear how the company will respond to future operational crises, the stock has corrected sharply, which may create some buying opportunities,” Bartini added.

The stock remains about 24% below the median target price of 650 rupees given by 14 analysts, according to LSEG data.

Pranav Gundlapalle said: “It is recognized that Paytm’s payments business is quite large and the sudden closure of payment banking operations may cause inconvenience to customers and merchants, so efforts will be made to ensure a smooth transition away from dependence on PPBL.” Bernstein Senior Analyst, Refers to Paytm Payments Bank Ltd.

(With information from Reuters)