Paytm’s parent company, One 97 Communications, received a warning from SEBI, the market regulator, over transactions with Paytm Payments Bank in FY22 that lacked proper approvals.
SEBI’s letter, dated July 15, 2024, highlighted that Paytm conducted transactions worth ₹324 crore and ₹36 crore without getting the necessary approvals from the audit committee or shareholders. This letter was shared by Paytm on the stock exchanges on Monday.
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SEBI noted inconsistencies in Paytm’s claims of compliance. On one hand, Paytm argued that it provided total transaction values for shareholders’ reference and that some transactions with Paytm Payments Bank didn’t need approval. On the other hand, the company’s Board and Audit Committee classified these transactions as significant and required approval.
Despite this, Paytm insists it has followed all regulations. The company stated that it has always adhered to Regulation 23 and Regulation 4(1)(h) of SEBI Listing Regulations and will respond in detail to SEBI’s concerns. Paytm also assured that the warning will not impact its financial, operational, or other activities.
Paytm emphasized its commitment to transparency, regulatory compliance, and high corporate governance standards. The company pledged to address SEBI’s concerns and improve compliance measures to avoid similar issues in the future.
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