SEBI warns Paytm over old transactions with banking unit

SEBI’s warning was related to two transactions with an unapproved amount of 3.24 bn rupees and 360 mn rupees each

July 16, 2024

SEBI flags Paytm for related party transactions with Payments Bank

Paytm disclosed in an exchange filing that it received an administrative warning Securities and Exchange Board of India (SEBI) for certain transactions with its banking unit in the fiscal year 2021-22.

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.

In a letter dated 15 July, SEBI 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.

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 regulations, and added that there is no impact on the financials and operations of the company due to the warning.

Earlier this year, India’s central bank instructed Paytm Payments Bank to cease accepting new deposits into its accounts or digital wallets, citing supervisory concerns and non-compliance with regulations.

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