The Securities and Exchange Board of India (SEBI) has issued an administrative warning to One 97 Communications, the parent company of Paytm, for related party transactions conducted with Paytm Payments Bank (PPBL) during the fiscal year 2021-22 without due approval from the audit committee or shareholders.
In a filing to the Bombay Stock Exchange (BSE), One 97 Communications stated its consistent compliance with SEBI regulations and its commitment to the highest compliance standards. The company has assured that it will submit a detailed response to SEBI.
SEBI’s letter dated July 15 revealed findings of non-compliance regarding financial disclosures and related party transactions. SEBI identified transactions worth Rs 360 crore conducted without the necessary approvals and warned the firm to enhance its compliance standards to prevent future violations. The letter also mandated the firm to inform its board and take corrective actions within 10 days.
