July 16, 2024
New Delhi, India
Paytm Shares
Shares of One 97 Communications Ltd, the parent company of Paytm, fell nearly 2% on Tuesday after the Securities and Exchange Board of India (SEBI) issued a warning letter regarding non-compliance in related party transactions with Paytm Payments Bank (PPBL) for FY22. The stock traded 1.47% lower at ₹462.25 per share in early trade on the BSE.
Key Highlights:
- SEBI Warning: SEBI’s administrative warning letter addressed related party transactions exceeding the approved limit of ₹360 crore. The transactions between One 97 Communications and PPBL were not duly approved by either the audit committee or shareholders, according to SEBI.
- Non-Compliance Observed: SEBI identified several non-compliances during its examination and emphasized the need for Paytm to improve its compliance standards to avoid future infractions. The regulatory body warned that failure to comply could result in enforcement actions.
- Paytm’s Response: In response, Paytm asserted its adherence to listing regulations, including all amendments and updates over time. The company assured stakeholders that the administrative warning would not impact its financial, operational, or other activities.
Stock Performance:
- Stock Decline: Paytm shares fell as much as 1.47% to ₹462.25 apiece in early trade on BSE. At 10:05 am, the shares were trading 1.47% lower at ₹462.25 per share.
Compliance and Governance:
- Commitment to Compliance: Paytm emphasized its commitment to upholding the highest compliance standards and plans to submit a detailed response to SEBI, addressing the concerns raised. The company reiterated its dedication to transparency, integrity, and adherence to regulatory requirements.
- SEBI’s Directive: SEBI instructed Paytm to present the warning letter to its board of directors for necessary corrective action. An action-taken report is to be submitted to SEBI within 10 days.
Corporate Statement:
Paytm stated, “The Company believes it has consistently acted in compliance with Regulation 23 read with Regulation 4(1)(h) of the SEBI Listing Regulations, including any amendments and updates to these regulations over time. The Company is committed to upholding and demonstrating the highest compliance standards, and shall also submit its response to SEBI. There is no impact on financial, operational, or other activities of the Company pursuant to the above-mentioned letter.”
Bottom Line:
Despite the administrative warning from SEBI, Paytm reassured its stakeholders that the company remains dedicated to maintaining high compliance standards and ensuring the highest levels of corporate governance. The company is taking steps to address SEBI’s concerns and prevent future non-compliance issues.
Today at 11:59 Paytm Shares were trading at Rs. 459.05, down −10.05 or(−2.14%)
Currency Market Update July 16, 2024
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