Paytm stock dips 2% after SEBI warning
Paytm in its filing said that it has adhered to all regulations and compliance standards set by SEBI.
image for illustrative purpose
![Paytm stock dips 2% after SEBI warning Paytm stock dips 2% after SEBI warning](https://www.bizzbuzz.news/h-upload/2024/07/16/1928794-newindianexpress2024-02115fc7a4-7f22-41cb-88c5-09e2cdee7771rbiaction.avif)
Shares of Paytm, the parent company of One97 Communications, have grabbed headlines on Monday morning after it received an administrative warning from the Securities and Exchange Board of India (SEBI) over transactions with Paytm Payments Bank (PPBL) in FY 2021-22.
SEBI claims that neither the audit committee nor the shareholders gave their consent for the transactions to take place.
However, in its filing, the fintech company stated that it has adhered to all regulations and compliance standards set by SEBI.
It further stated that the company's operations, finances, or other activities are unaffected by SEBI's administrative warning.
"The company is committed to upholding and demonstrating the highest compliance standards and shall also submit its response to SEBI," Paytm said in its filing.
Paytm previously stated that it had shared the total transaction value conducted with PPBL by the company and its subsidiaries for the benefit of shareholders.
It mentioned that transactions between OCL's subsidiaries and PPBL were not categorised as Related Party Transactions (RPTs) in the fiscal year 2021-22.
However, Paytm's board and audit committee viewed transactions between OCL and/or its subsidiaries with PPBL as significant RPTs.
"The above violations have been viewed very seriously. You are, therefore, warned to be careful in the future and improve your compliance standards to avoid the recurrence of such instances, failing which appropriate enforcement action would be initiated in accordance with the law," SEBI said.
The market regulator suggested that Paytm present the letter before its board of directors for taking necessary corrective action.
It also asked Paytm to submit an action report within 10 days. Following this, the shares of Paytm fell by 2.45 percent.
Today, Paytm share price declined 1.80 percent to 458.215 on NSE. The stock reached a high of Rs 471.40 and a low of Rs 454.75.