Paytm shares decline over 2% as company gets 'administrative warning letter' from Sebi

Shares of One 97 Communications, Paytm's parent firm, declined over 2 per cent on Tuesday after the company got an 'administrative warning letter' from Sebi over related party transactions it had entered into with Paytm Payments Banks (PPBL) in FY22.

The stock dipped 2 per cent to settle at Rs 459.75 on the BSE. During the day, it dropped 3 per cent to Rs 454.85.

At the NSE, it went lower by 2.45 per cent to Rs 458.10.

One 97 Communications has got an 'administrative warning letter' from Sebi over related party transactions it had entered into with Paytm Payments Banks in FY22 without due approval of either audit committee or the shareholders.

In a BSE filing, the company said it has consistently acted in compliance with Sebi regulations.

The fintech firm further said it is "committed to upholding and demonstrating the highest compliance standards and shall also submit its response to Sebi." The Securities and Exchange Board of India, in a letter dated July 15, had said it had conducted an examination in relation to the disclosure of financial and other information relating to One 97 Communications and its associate Paytm Payments Bank Limited (PPBL).

"In this context, the following non-compliances were observed during the course of examination...The excess related party transactions (RPTs) entered into by the company and/or its subsidiaries with PPBL during the FY 2021-22 are without due approval of either the audit committee or the shareholders," according to the Sebi letter.