According to a filing on the exchange, Paytm, a fintech company, received an administrative warning for specific transactions with its banking subsidiary for the fiscal year 2021–2022.
In the latter, dated July 15, the Securities and Exchange Board of India (Sebi) stated that some transactions between Paytm and the now-closed Paytm Payments Bank were carried out without the audit committee or shareholders’ consent.
Two transactions totaling an unapproved sum of Rs 324 crore ($38.8 million) and Rs 36 crore rupees each were the subject of the administrative warning.
Sebi said the violations were viewed “very seriously” and directed Paytm to place the letter before its board for corrective measures and submit a report on action taken within 10 days after that.
Paytm, in its response, said it believes it has consistently acted in compliance with regulation, and added that there is no impact on financials and operations of the company due to the warning.
Earlier in the year India’s central bank ordered Paytm Payments Bank to stop accepting new deposits in its accounts or digital wallets, citing supervisory concerns and non-compliance with rules.
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