Fintech
Paytm share price plunges on SEBI administrative notice; fintech giant says no impact on finance and other operations
Paytm share price fell by one percent on Tuesday after the company received a warning letter from the capital markets regulator. Paytm shares fell as much as 1.47% to ₹462.25 apiece in early trading BSE.
A communication 97The parent company of fintech giant Paytm, has received an administrative warning letter from the Securities Exchange Board of India (SEBI) regarding related party transactions entered into by the company or its subsidiaries with Paytm Payments Bank for fiscal 2022.
Sebi observed several non-compliances during the course of its examination and highlighted that One 97 Communications had engaged in transactions with Paytm Payment Bank beyond the limits of the approved resolution of ₹360 crore as services availed and rendered.
The violations were considered “very serious” by Sebi.
“You are therefore advised to exercise caution in future and improve your compliance standards to avoid such instances from recurring in future, failing which appropriate enforcement action will be initiated in accordance with law,” Sebi said in its warning letter to Payment.
In response to SEBI’s administrative warning, Paytm said it has always complied with all listing regulations from time to time, including any amendments and updates to such regulations from time to time.
In a stock exchange filing, Paytm said it is committed to upholding and demonstrating the highest standards of compliance and will submit a detailed response to SEBIresponding to the regulator’s concerns on the matter.
“The Company believes that 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 such regulations from time to time. The Company is committed to upholding and demonstrating the highest compliance standardsand will also submit its response to SEBI. There is no impact on the financial, operational or other activities of the Company under the above mentioned letter,” Paytm said.
Paytm has assured its shareholders that this administrative notice will not have any impact on its financial, operational or other activities. The company is taking necessary steps to address SEBI’s concerns and improve compliance standards to prevent future occurrences.
“Paytm remains committed to transparency and integrity in all its operations, ensuring compliance with regulatory requirements and the highest standards of corporate governance,” he said.
At 10:05 am, Paytm shares were down 1.47% at ₹462.25 each on the Boston Stock Exchange.
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