BUSINESS-ECONOMY
Paytm, India's digital payments pioneer, is again in the news owing to a regulatory crackdown. The company has notified its investors of an administrative warning from the country's market regulator, SEBI, over related-party transactions with Paytm Payments Bank in FY22 without auditor approval. Paytm, India's digital payments pioneer, is again in the news owing to a regulatory crackdown. The company has notified its investors of an administrative warning from the country's market regulator, SEBI, over related-party transactions with Paytm Payments Bank in FY22 without auditor approval. Paytm's troubles began with Paytm Payments Bank, when India's central bank barred it from further transactions due to regulatory non-adherence. Paytm's troubles have spiked since then, with falling stock prices and employee troubles weighing on the already troubled landscape. However, Paytm remains confident of its rebound, signalling a renewed sense of functioning and eyeing new avenues for growth. On the recent SEBI's warnings, Paytm said and I quote, '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 response added. Paytm has assured stakeholders that this administrative warning will not impact its financial, operational, or other activities. However, the gravity of the situation is yet to be deciphered. None
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