Following Vijay Shekhar Sharma’s resignation as part-time non-executive chairman and board member at Paytm Payments Bank, Paytm shares today rallied 5% in the morning only to give up all the gains quickly in volatile trading as investors try to understand whether the restructuring of the board will help placate an angry RBI.

After two days of 5% upper circuits, the stock was trading just 1% higher in early trade.

“Finally, the ego has been let loose for a bigger goal. Vijay has taken the right move from a broader perspective. The new management will give a better image of the payments bank,” said market veteran Sanjiv Bhasin.

Hopeful that it is a matter of time before the regulatory issues fade away, Bhasin said the longer-term story of Paytm looks very strong and he remains an investor.

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Last night, One 97 announced that its associate entity Paytm Payments Bank has reconstituted its board of directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal. They have recently joined as Independent Directors.”OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee. The Company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman,” OCL said in a statement.Global broking firm Macquarie, which has shared a love-hate relationship with Paytm ever since it got listed on stock exchanges, has maintained its underperform call with a target price of Rs 275.

It said that the fintech’s founder Sharma is trying to salvage some value from PPBL and is sending a message to the regulator that he is willing to give up control of PPBL. The survival of PPBL is in question and to ensure survival, RBI would have to provide relaxations to PPBL, Macquarie said.

“We don’t expect RBI to authorise any related-party transactions between Paytm and PPBL in the future. Some lending partners reveal that they are looking again at their relationship with Paytm,” said the note.

Lending business may be hit if partners scale down or terminate their relationships with Paytm, it warned.

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