New Delhi, July 16: Paytm has reportedly received an administrative warning from the Securities and Exchange Board of India (SEBI) regarding past transactions with Paytm Payments Bank. reports suggest that the warning from the Sebi has caused a nearly 2 percent drop in the shares of One97 Communications Limited, which is the parent company of Paytm.

As per a report of India Today, Paytm has been issued an administrative warning by SEBI due to old transactions with Paytm Payments Bank. Multiple reports suggest that Sebi found many instances where rules were not followed during their investigation. One 97 Communications received a warning letter from the SEBI about certain transactions that took place between One 97 Communications or its subsidiaries with Paytm Payments Bank during the financial year 2022. Paytm 'Job Cuts': Labour Ministry Summons Paytm Parent Firm One97 Over Alleged Forced Layoffs.

Reports suggest that SEBI, after examining these transactions, found that there were several instances where the company did not comply with the rules and regulations. Specifically, One 97 Communications exceeded the approved limit of INR 360 crore on transactions with Paytm Payments Bank. The company was involved in transactions with its own subsidiary bank and these transactions went beyond the approved limit set by SEBI. The violation of the approved limit has led to the issuance of an administrative warning letter to One 97 Communications. Paytm Founder Vijay Shekhar Sharma Responds to Senior-Level Employees Exits, Says ‘All Is Well and All Is Rocking’.

The stock price of One97 Communications Limited reportedly dropped by almost 2 percent on Tuesday. The decline in stock value might be a result of the company receiving a warning letter from the SEBI. According to reports, Paytm has responded to the warning letter from SEBI. In their response, Paytm has assured that they are committed to following all the rules and regulations. Paytm also stated that they will provide a detailed response to SEBI, addressing the concerns raised by the regulator and assured all stakeholders that this warning letter will not have any negative impact on their financial or operational activities.

(The above story first appeared on LatestLY on Jul 16, 2024 12:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).