Posted By Uma Rajagopal
Posted on July 16, 2024
BENGALURU (Reuters) – Paytm received an administrative warning from India’s markets regulator for certain transactions with its banking unit in the fiscal year 2021-22, the fintech firm said in an exchange filing.
The Securities and Exchange board of India (SEBI), in the latter dated July 15, said some transactions between Paytm and the now wound-down Paytm Payments Bank were conducted without approval from the company’s audit committee or its shareholders.
The administrative warning was related to two transactions with an unapproved amount of 3.24 billion rupees ($38.8 million) and 360 million rupees each.
SEBI said the violations were viewed “very seriously” and directed Paytm to place the letter before its board for corrective measures and submit a report on action taken within 10 days after that.
Paytm, in its response, said it believes it has consistently acted in compliance with regulation, and added that there is no impact on financials and operations of the company due to the warning.
Earlier in the year India’s central bank ordered Paytm Payments Bank to stop accepting new deposits in its accounts or digital wallets, citing supervisory concerns and non-compliance with rules.
($1 = 83.5910 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Varun H K)
