Paytm Faces SEBI's Scrutiny Over Related Party Transactions with PPBL in FY22
Introduction In a recent development, One 97 Communications, the parent company of Paytm, has received an administrative warning from the Securities and Exchange Board of India (SEBI). The issue revolves around related party transactions conducted with Paytm Payments Bank (PPBL) during the fiscal year 2022, which lacked the necessary approvals from the audit committee and shareholders. One 97 Communications, which is Paytm's parent firm, has got an 'administrative warning letter' from SEBI over related party transactions it had entered into with Paytm Payments Banks (PPBL) in FY22. SEBI’s Examination and Findings According to a letter from SEBI dated July 15, an examination was conducted regarding the disclosure of financial and other information by One 97 Communications and its associate, PPBL. The examination revealed non-compliances related to related party transactions (RPTs) between the company, its subsidiaries, and PPBL. The SEBI letter highlighted that the company h...