Paytm share price traded a percent lower on Tuesday after the company received a warning letter from capital markets regulator. Paytm shares fell as much as 1.47% to ₹462.25 apiece in early trade on BSE.
One 97 Communications, the parent company of fintech major Paytm, received an administrative warning letter from Securities Exchange Board of India (SEBI) with respect to related party transactions entered by the company or its subsidiaries with Paytm Payments Bank for FY22.
Sebi observed several non-compliances in the due course of examination and highlighted that One 97 Communications transacted with Paytm Payments Bank over and above the limits of approved resolution of ₹360 crore as services availed as well as rendered.
The violations have been viewed “very seriously” by Sebi.
“You are, therefore, warned to be careful in future and improve your compliance standards to avoid recurrence of such instances in future, failing which appropriate enforcement action would be initiated in accordance with the law,” Sebi said in its warning letter to Paytm.
In response to the SEBI administrative warning, Paytm said that it has consistently adhered to all listing regulations from time to time, including any amendments and updates to these regulations over time.
In a stock exchange filing, Paytm said 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.
“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 financial, operation or other activities of the Company pursuant to the above-mentioned letter,” said Paytm.
Paytm has assured its stakeholders that this administrative warning will not impact its financial, operational, or other activities. The company is taking the necessary steps to address SEBI’s concerns and improve compliance standards to prevent future occurrences.
“Paytm remains dedicated to maintaining transparency and integrity in all its operations, ensuring adherence to regulatory requirements and the highest standards of corporate governance,” it said.
At 10:05 am, Paytm share were trading 1.47% lower at ₹462.25 apiece on the BSE.
