E-Paper
Paytm gets Sebi warning on related party transactions with Payments Bank
Paytm said it has consistently adhered to all listing regulations and will address Sebi's concerns with a detailed response.
Paytm's parent company One 97 Communications received an administrative warning letter from market regulator SEBI over related party transactions conducted by the company with Paytm Payments Bank for FY22. Sebi said that these transactions lacked approval from both the audit committee and shareholders. Following this, Paytm said it has consistently adhered to all listing regulations and will address Sebi's concerns with a detailed response.
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Sebi's administrative warning focuses on related party transactions valued at ₹324 crore and ₹36 crore, respectively. These transactions were conducted during FY 2021-22 and were not approved by either the audit committee or the shareholders, Sebi said. The markets regulator noted in the letter, “On one hand, the company claimed that it had provided a cumulative numerical value of the transactions undertaken with PPBL by the Company and its subsidiaries for reference by the shareholders and that transactions between subsidiaries of OCL and PPBL do not qualify as RPTs during the FY 2021-22."
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It added, "But, on the other hand, the Board and Audit Committee of the Company have considered transactions between OCL and/or its subsidiaries with PPBL as material RPTs and passed a resolution that RPTs with PPBL will be within the limits as mentioned therein the respective resolutions.”
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Paytm said, "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 the financial, operational, or other activities of the company pursuant to the above-mentioned letter."
