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Shares of One97 Communications Limited, the parent firm of digital payments company Paytm, fell nearly 2% on Tuesday after receiving a warning letter from the Securities and Exchange Board of India (Sebi) regarding related party transactions for FY22.
The stock was down 1.78% to Rs 461.30 per share in early trade on the Bombay Stock Exchange (BSE).
The warning was issued to One 97 Communications, Paytm's parent company, due to non-compliances related to transactions with Paytm Payments Bank that exceeded the approved limit of Rs 360 crore.
Sebi viewed these violations as serious.
“You are, therefore, warned to be careful in future and improve your compliance standards to avoid recurrence of such instances in future, failing which appropriate enforcement action would be initiated in accordance with the law,” Sebi said in its warning letter to Paytm.
In its letter, Sebi warned the company to improve its compliance standards to prevent future infractions, stating that failure to do so could result in enforcement action.
Paytm responded by affirming its commitment to compliance and stated that it has consistently adhered to listing regulations, including amendments over time.
The company plans to submit a detailed response to Sebi, addressing the regulator's concerns.
Paytm assured stakeholders that this administrative warning will not affect its financial, operational, or other activities. The company emphasized its dedication to transparency, integrity, and adherence to regulatory requirements.
“Paytm remains dedicated to maintaining transparency and integrity in all its operations, ensuring adherence to regulatory requirements and the highest standards of corporate governance,” it said.
