One97 Communications Limited, the parent company of Paytm, experienced a decrease of almost 2% in its shares on Tuesday following a cautionary letter from the Securities and Exchange Board of India (Sebi) concerning related party transactions for the fiscal year 2022.
During the initial trading session on the Bombay Stock Exchange (BSE), the stock dropped by 1.78% to Rs 461.30 per share.
Sebi’s warning was directed at One 97 Communications, the parent company of Paytm, due to breaches in compliance related to transactions with Paytm Payments Bank that surpassed the approved limit of Rs 360 crore.
Sebi considered these violations to be of a grave nature.
Sebi cautioned the company to enhance its compliance standards in order to prevent any future breaches, emphasizing that failure to do so may lead to enforcement action.
Paytm’s response
Paytm has reaffirmed its dedication to compliance and emphasized its consistent adherence to listing regulations, even with changes made over time. The company intends to provide a comprehensive response to Sebi, addressing the concerns raised by the regulator. Paytm has assured stakeholders that the recent administrative warning will not impact its financial, operational, or any other activities. The company has reiterated its comm