One 97 Communications Ltd., which operates Paytm, has received an administrative warning from the market regulator over unauthorised related-party transactions with Paytm Payments Bank Ltd. in financial year 2022.
The excess related-party transactions worth Rs 360 crore entered into by One 97 Communications with its payments bank are without due approval of either the audit committee or the shareholders, the Securities and Exchange Board of India said in the warning letter dated July 15.
The company claimed that it had provided a cumulative numerical value of the transactions, while the board and the audit committee considered transactions with PPBL as material related party transacrtions, it said. "The above violations have been viewed very seriously."
The market regulator warned the company to be careful in future and improve compliance standards to avoid the recurrence of such instances. SEBI advised the company to place the warning letter before the board for necessary corrective action and it is to be submitted to the regulator within 10 days thereafter.
In an exchange filing on Monday, the company said there is no impact on financial, operation or other activities as a result of the letter.
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