Lucknow Press
Paytm Share Price: The troubles of the fintech company Paytm are not coming to an end. One problem after another is coming towards the company. First the Reserve Bank of India (RBI) gave a big blow to Paytm and now the company is getting a warning from the market regulator. The effect of this news started showing on Paytm shares. Paytm shares started falling as soon as the market opened. By 9.50 am, Paytm shares had fallen to 462.50 -6.65 (-1.42%).
Paytm’s parent company One 97 Communications Ltd. has received a warning from market regulator SEBI. SEBI has issued a warning letter regarding the company’s transactions. SEBI has given this warning regarding unauthorized related party transactions with Paytm Payments Bank Ltd in the financial year 2021-2022. On July 15, an administrative warning letter has been issued to Paytm by SEBI.
What is the whole matter?
SEBI has accused Paytm’s parent company One97 Communication that in the financial year 2021-22, Paytm made transactions with its subsidiary Paytm Payment Bank, but neither the approval of the audit committee was taken for this nor the shareholders were informed about it. In its warning letter, SEBI has highlighted the violation of rules in two transactions. According to SEBI, the company made transactions of Rs 324 crore and Rs 36 crore, about which the audit committee and shareholders were not informed nor their approval was taken.
Paytm got a warning, where to keep in mind in future
SEBI has warned Paytm to take care of these things in future. It has advised Paytm to improve its standards and said that if something like this happens again, strict action will be taken against the company. Not only this, the company has been asked to take steps to improve the issues highlighted by SEBI. It will also have to give information about this to SEBI within 10 days.
What did Paytm say on SEBI’s warning
Paytm said that it had disclosed the number of transaction amounts. However, the company has taken a positive stance regarding SEBI’s warning and said that it will follow SEBI’s instructions. The company has said that this warning will not have any effect on its business. The company’s financial, business and other activities will continue as before. Paytm has said that it is committed to maintaining high compliance standards. It will also submit its reply to SEBI soon.
The Reserve Bank took action
Earlier, the Reserve Bank of India had taken strict action against Paytm for violating the rules. On January 31, RBI had banned the banking activities of Paytm Payment Bank. RBI’s action on Paytm Payment had a big impact on the company’s business. All the services of the company like Fastag, banking, Paytm Payment Bank and UPI service were shut down.
