NEW DELHI: Securities and exchange board of India (Sebi) served administrative warning to Paytm over two transactions with Paytm Payments Bank conducted in the fiscal year 2021-22. Paytm on Monday said in its filing that it has strictly followed all regulatory requirements and compliance standards.
The two transactions were of 3.24 billion rupees ($38.8 million) and 360 million rupees, respectively, which were not approved.
Sebi’s letter dated July 15 pointed out discrepancies between Paytm’s compliance claims and the material transactions reviewed by the Board and Audit Committee.
Responding to this, Paytm said, “The Company believes it has consistently acted in compliance with Regulation 23 read with Regulation 4(1)(h) of the SEBI Listing Regulations, including any amendments and updates to these regulations over time.”
“The company is committed to upholding and demonstrating the highest compliance standards, and shall also submit its response to SEBI. There is no impact on the financial, operational, or other activities of the company pursuant to the above-mentioned letter,” it added.
It also reassured stakeholders that the administrative warning will not affect its financial or operational activities.
Earlier this year, RBI ordered Paytm Payments Bank to stop taking new deposits after alleging “persistent non-compliances and ongoing material supervisory concerns within the bank.”
The two transactions were of 3.24 billion rupees ($38.8 million) and 360 million rupees, respectively, which were not approved.
Sebi’s letter dated July 15 pointed out discrepancies between Paytm’s compliance claims and the material transactions reviewed by the Board and Audit Committee.
Responding to this, Paytm said, “The Company believes it has consistently acted in compliance with Regulation 23 read with Regulation 4(1)(h) of the SEBI Listing Regulations, including any amendments and updates to these regulations over time.”
“The company is committed to upholding and demonstrating the highest compliance standards, and shall also submit its response to SEBI. There is no impact on the financial, operational, or other activities of the company pursuant to the above-mentioned letter,” it added.
It also reassured stakeholders that the administrative warning will not affect its financial or operational activities.
Earlier this year, RBI ordered Paytm Payments Bank to stop taking new deposits after alleging “persistent non-compliances and ongoing material supervisory concerns within the bank.”
