Fintech

Paytm Receives Warning from Sebi Over Transactions with Banking Unit

• ByStartupStory     |    July 17, 2024

Paytm, India’s leading fintech firm, disclosed on Thursday that it had been cautioned by the Securities and Exchange Board of India (Sebi) for transactions involving its banking unit during the fiscal year 2021-22.

In an exchange filing, Paytm revealed that Sebi had issued an administrative warning citing transactions conducted between Paytm and its now-defunct Paytm Payments Bank without prior approval from the company’s audit committee or shareholders.

The regulatory body highlighted two transactions, amounting to Rs 324 crore ($38.8 million) and Rs 36 crore respectively, as being unauthorized. Sebi underscored the seriousness of these violations and instructed Paytm to present the warning to its board for corrective measures.

Responding to the regulatory caution, Paytm asserted its adherence to regulatory norms, emphasizing that the warning would not impact its financials or operational continuity.

“This administrative warning from Sebi does not affect our ongoing operations or financial stability,” Paytm stated in its response to the regulatory action.

Earlier this year, the Reserve Bank of India had directed Paytm Payments Bank to halt the acceptance of new deposits, citing concerns related to supervision and non-compliance with regulatory standards.

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