‘Adherence To Regulations’ says SEBI to Paytm
The early morning session saw a decrease in the price of Paytm shares following the company’s receipt of a warning notice from SEBI. In early trading on the BSE, Paytm shares dropped as high as 1.47% to 462.25 apiece.
In its letter, SEBI drew attention to disparities that existed between the company’s declared compliance and the transactions that the Board and Audit Committee deemed relevant (RPTs). Although Paytm stated in the filing that it has complied with all laws and regulations.
SEBI Issues a Paytm Warning
The warning concerns the excessive related party transactions (RPTs) that Paytm and/or its subsidiaries allegedly engaged in with Paytm Payments Bank Limited (PPBL) in FY 2021–2022, alleging that these transactions were carried out without the required consent of the audit committee or shareholders.
Paytm’s Reaction to the Alert From SEBI
Paytm responded to the administrative warning from SEBI by stating that company has continuously complied with all listing laws, including any updates and modifications made to them over time.
In response to SEBI’s concerns, the company said in its stock exchange filing that it is dedicated to maintaining and proving the highest compliance standards and that it will provide a thorough response.
“The Company considers that it has continuously complied with Regulation 23 in conjunction with Regulation 4(1)(h) of the SEBI Listing Regulations, taking into account any modifications and updates made to these rules over time. The business will reply to SEBI and is dedicated to maintaining and proving the highest compliance standards. According to the aforementioned letter, there is no effect on the company’s financial, operational, or other activities “Paytm stated as much in a stock exchange filing on Monday night.
Paytm guarantees its stakeholders that its financial, operational, or other activities will not be impacted by this administrative warning. In order to allay SEBI’s worries and raise compliance requirements and stop similar incidents in the future, the company is making the required changes.
Paytm is committed to upholding integrity and transparency in all aspects of its business, as well as following legal obligations and the strictest corporate governance guidelines.
