Paytm Money settles Sebi norm violation allegations for Rs 45.5 lakh

Paytm Money, a wholly-owned subsidiary of One97 Communications, has paid ₹45.5 lakh to the Securities and Exchange Board of India (Sebi) as a settlement amount for alleged lapses in complying with the market regulator’s technical glitch framework.

 

A show-cause notice was issued to the company for the alleged violations, such as not setting a 70 per cent limit for generation of timely alerts for all critical assets and not submitting documentary evidence regarding peak load observed for the inspected period.

 

Other alleged violations include not connecting all its critical systems with log analytics and monitoring and not conducting live disaster recovery (DR) drill for a period between April 2023 and September 2023.

 

 

“The High Powered Advisory Committee (HPAC) in its meeting held on November 18, 2024 considered the settlement terms proposed and recommended that the case may be settled upon payment of ₹45,50,000 by the Noticee as settlement amount towards the settlement terms,” the markets regulator said in its settlement order.

 

In a separate development, Paytm Money announced the appointment of Rajeev Krishnamuralilal Agarwal as an additional non-executive independent director on its Board. Agarwal will serve as a member of the audit committee and the chairperson of the risk management committee and the corporate social responsibility (CSR) committee at the firm.

 

At present, Agarwal serves on the board of One97 Communications, the company said in a statement. One97 Communications operates the Paytm brand.

 

Other members on Paytm Money’s board include Narasinganallore Srinivasan and Cyrus Khambata.

 

“Having made significant strides in enhancing our governance framework, we continue to innovate and expand our investment offerings. With Shri Agarwal’s deep expertise in governance and risk management, we are confident that his guidance will further strengthen these efforts and drive long-term, sustainable growth,” said Rakesh Singh, chief executive officer (CEO), Paytm Money.