SEBI Warns Paytm over Old Transactions

Paytm received administrative warning from the Securities and Exchange Board of India (SEBI) for two transactions it made with Paytm Payments Bank during the fiscal year 2021–2022. Paytm stated in a filing on July 15 that it has complied with all legal obligations and standards of compliance.

The two transactions, worth 360 million and 3.24 billion rupees ($38.8 million), respectively, were turned down.

Disparities between Paytm’s compliance claims and the relevant transactions examined by the Board and Audit Committee were highlighted in a letter from SEBI dated July 15.

Paytm responded, “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 further added.

Stakeholders were reassured that Paytm’s financial and operational operations will not be impacted by the administrative warning.

Earlier this year, RBI ordered Paytm Payments Bank to cease accepting new deposits after alleging “persistent non-compliances and ongoing material supervisory concerns within the bank.”