Paytm Admits Adhering To Regulations After SEBI Warning

Paytm Admits Adhering To Regulations After SEBI Warning

The market regulator highlighted the discrepancies between the company's stated compliance and the transactions

After the Securities and Exchange Board of India (SEBI) warned Paytm, the latter has stated that it has consistently adhered to all regulations, including the amendments and updates.

In its stock exchange filing, the digital payments platform stated, "The company has consistently acted in compliance with Regulation 23 read with Regulation 4(1)(h) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, including any amendments and updates to these. The company is committed to upholding and demonstrating the highest compliance standards, and shall also submit its response to SEBI,"

Paytm added that there was no impact on the financial, operational or other activities of the company pursuant to its response.

Earlier, SEBI had highlighted the discrepancies between the company's stated compliance and the transactions considered as material RPTs by the board and the audit committee. It also warned Paytm.

The warning letter read, "You are warned to be careful in future and improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action would be initiated in accordance with the law.”

Paytm assured the stakeholders that the warning would not impact its financial, operational, or other activities. The company was taking steps to address SEBI's concerns and improve compliance standards to prevent future occurrences.

Meanwhile, Paytm’s shares fell 2.62 percent to Rs.456.85 on the Bombay Stock Exchange (BSE) after One 97 Communications, the parent company of Paytm, received an administrative warning letter from SEBI. It was related to the company or its subsidiaries’ transactions with Paytm Payments Bank for the Financial Year 2022.