Won’t Allow Paytm-Like Contamination in Stock Markets, Says SEBI Chairperson Madhabi Puri Buch
The Markets regulator, the Securities and Exchange Board of India (SEBI), will not allow Paytm-like 'contamination' in the stock markets, its Chairperson Madhabi Puri Buch said on Tuesday.
Mumbai, July 30: The Markets regulator, the Securities and Exchange Board of India (SEBI), will not allow Paytm-like 'contamination' in the stock markets, its Chairperson Madhabi Puri Buch said on Tuesday. The SEBI Chairperson added that Paytm's problems were contained within its own banking system due to the absence of a Know-Your-Customer registration agency (KRA) system. Paytm Gets Administrative Warning From SEBI Over Old Transactions, Shares Down Nearly 2%, Company Responds; Check Details.
"A problem within Paytm stayed with Paytm and didn't affect other banks. But if we allow Paytm into our system without KRA oversight, it could contaminate the entire market. We cannot allow that," she said during an event at the National Stock Exchange (NSE) here. Buch said that "our KRAs will always be in place to ensure that things are validated and to prevent any mischievous player from causing harm". Paytm 'Job Cuts': Labour Ministry Summons Paytm Parent Firm One97 Over Alleged Forced Layoffs.
She also added that "we will always have our KRA sitting in the middle to ensure that things are validated". "Otherwise, any mischievous player could come in and contaminate the entire system," she noted. Earlier this year, the Reserve Bank of India imposed certain restrictions on Paytm Payments Bank for lapses, including irregularities in the KYC process.
(The above story first appeared on LatestLY on Jul 30, 2024 09:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).