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‘Consistently acted in compliance’, Paytm on SEBI’s administrative warning

Entrackr · 2m

In a response to the SEBI administrative warning, fintech company Paytm said that it has consistently adhered to all listing regulations from time to time, including any amendments and updates to these regulations. On Monday, Paytm received an administrative warning from India’s markets regulator for certain transactions with its banking unit in the fiscal year FY22. The warning pertains to the excess related party transactions (RPTs) entered into by Paytm and its subsidiaries with Paytm Payments Bank Limited (PPBL) during FY22, which were allegedly conducted without the due approval of either the audit committee or shareholders. As per a Reuters report, the warning was related to two transactions with an unapproved amount of Rs 360 crore each. In a stock exchange filing, Paytm said that it is committed to upholding and demonstrating the highest compliance standards and will submit a detailed response to SEBI, addressing the regulator’s concerns on the matter. “… There is no impact on financial, operation or other activities of the company pursuant to the above-mentioned letter,” said Paytm in a stock exchange filing on Monday night. Paytm further said that it is taking the necessary steps to address SEBI’s concerns and improve compliance standards to prevent future occurrences.