After Paytm’s parent company One 97 Communications received an administrative warning letter from Securities and Exchange Board of India (SEBI), it said that the company has consistently adhered to all listing regulations from time to time, including any amendments and updates to these regulations over time. SEBI, in its letter dated July 15, stated that certain transactions in FY22 between Paytm and its subsidiary Paytm Payments Bank were conducted without approval from the company’s audit committee or its shareholders.
The letter by SEBI, as uploaded by One 97 Communications in an exchange filing on Monday, mentioned that the transactions by Paytm valued at Rs 324 crore and Rs 36 crore conducted during FY22 did not receive the requisite approval from either the audit committee or the shareholders.
SEBI said that the “violations have been viewed very seriously” and warned the company to be careful in future and improve its “compliance standards to avoid recurrence of such instances in future, failing which appropriate enforcement action would be initiated in accordance with the law”.
In a regulatory filing, Paytm said, “The company is committed to upholding and demonstrating the highest compliance standards and shall also submit its response to SEBI.” Paytm also assured its stakeholders that the administrative warning will have no impact on financial, operation or other activities of the company and that it is taking the necessary steps to address SEBI’s concerns and improve compliance standards to prevent future occurrences.
“Paytm remains dedicated to maintaining transparency and integrity in all its operations, ensuring adherence to regulatory requirements and the highest standards of corporate governance,” it said in a statement.