Paytm Money Resolves SEBI Dispute Amidst Technical Norm Allegations

Paytm Money, a subsidiary of One97 Communications, resolved a case with SEBI concerning alleged technical norm violations by paying a settlement amount of Rs 45.50 lakh. The case involved accusations related to failure in generating timely alerts for critical assets and inadequate documentation of peak load observations.

Paytm Money, a subsidiary of fintech giant One97 Communications, has settled a case with India's market regulator, SEBI, concerning alleged violations of technical norms. This resolution comes after Paytm Money paid a settlement amount of Rs 45.50 lakh, agreeing with SEBI's settlement regulations.

The allegations stemmed from SEBI's technical glitch framework outlined in a circular from November 25, 2022. The allegations included Paytm Money's failure to meet the permissible limit for generating timely alerts for critical assets and the lack of adequate documentation concerning peak load observations, alongside failing to conduct a live disaster recovery drill.

By proposing a settlement application in September 2023 and paying the settlement fee, Paytm Money sought to resolve these legal proceedings without admitting or denying the alleged findings. SEBI's adjudicating officer ultimately accepted the settlement, bringing the proceedings to a conclusion.