Paytm Stocks Dip Following SEBI Warning on Unapproved Transactions

Paytm's parent company, One 97 Communications, faced a decline in stock prices after receiving an administrative warning letter from SEBI regarding unauthorized related party transactions with Paytm Payments Banks in FY22. The company assured it adheres to SEBI regulations and will respond to the warnings promptly.

Shares of One 97 Communications, Paytm's parent firm, declined over 2 per cent on Tuesday following an administrative warning letter from SEBI concerning related party transactions with Paytm Payments Banks (PPBL) during FY22.

The stock dipped 2 per cent to settle at Rs 459.75 on the BSE, with an intraday low of 3 per cent at Rs 454.85. On the NSE, the stock went lower by 2.45 per cent to Rs 458.10.

SEBI's letter highlighted non-compliances in related party transactions without due approval from the audit committee or shareholders. In response, One 97 Communications reiterated its commitment to adhering to SEBI regulations and stated it would submit a formal reply to the warning.