Jul 16, 2024 11:52 AM IST
Paytm shares drop nearly 2% after Sebi warning on related party transactions.
Paytm share price dipped almost two per cent today (July 16) after the company received a warning letter from capital markets regulator Securities Exchange Board of India (Sebi). Paytm shares fell as much as 1.88% to ₹460.80 apiece on BSE after One 97 Communications, the parent company of fintech major Paytm, received an administrative warning letter from Sebi with respect to related party transactions entered by the company or its subsidiaries with Paytm Payments Bank for FY22.
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The violations have been viewed “very seriously” by Sebi, it said, adding, “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.”
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In response to the Sebi warning, Paytm said that it has consistently adhered to all listing regulation, including any amendments and updates to these regulations over time. The company is committed to upholding and demonstrating the highest compliance standards and will submit a detailed response to SEBI, it said.
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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 financial, operation or other activities of the Company pursuant to the above-mentioned letter.”
