New Delhi [India], July 16 : In response to the SEBI administrative warning, India's leading payments and financial services distribution platform, Paytm, said that it has consistently adhered to all listing regulations from time to time, including any amendments and updates to these regulations over time.
The warning pertains to the excess related party transactions (RPTs) entered into by Paytm and/or its subsidiaries with Paytm Payments Bank Limited (PPBL) during FY 2021-22, which were allegedly conducted without the due approval of either the audit committee or shareholders.
The company stated in its stock exchange filing that it is committed to upholding and demonstrating the highest compliance standards and will submit a detailed response to SEBI, addressing the regulator's concerns on the matter.
"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," said Paytm in a stock exchange filing on Monday night.
SEBI's letter highlighted discrepancies between the company's stated compliance and the transactions considered material (RPTs) by the Board and Audit Committee. While Paytm has mentioned in the filing that it has adhered to all regulations and compliance.
Paytm assures stakeholders that this administrative warning will not impact its financial, operational, or other activities. The company is taking the necessary steps to address SEBI's concerns and improve compliance standards to prevent future occurrences.
Paytm remains dedicated to maintaining transparency and integrity in all its operations, ensuring adherence to regulatory requirements and the highest standards of corporate governance.
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