paytm shares: Paytm to form group advisory committee to strengthen compliance

One 97 Communications (Paytm) on Friday said that it will form a group advisory committee, chaired by former SEBI Chairman M. Damodaran, to work with the board for strengthening compliance, and regulatory matters.

The move comes after the Reserve Bank of India’s dictat, barring Paytm Payments Bank from onboarding new customers and offering incremental banking services from March, due to concerns regarding breach of and compliance with regulatory norms.

The committee will be chaired by 3 persons, namely Damodaran, Mukund Manohar Chitale, and Ramachandran Rajaraman, the Paytm parent said in an exchange filing.

Chitale was the former president of Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of Banking Codes and Standards Board of India nominated by RBI. Meanwhile, R. Ramachandran was the former Chairman and Managing Director of Andhra Bank.

The Group Advisory Committee will work closely with the board, and the committee will induct additional members, as necessary, One 97 Communications said.

“The company’s management is committed to drive sustainable business growth, while adhering to a regulatory and compliance framework,” it said.Paytm Payments Bank, which is 49% owned by Paytm, has also been asked to not engage with Paytm’s other business units for Nodal accounts. The directions by the RBI wreaked havoc on Dalal Street, as shares of Paytm have cracked 45% so far in February. On Friday, the stock ended 6% down on the National Stock Exchange at Rs 419.15.

Post the RBI directive, Paytm Payments Bank has seen at least two independent directors resign from its board, sources told ETtech.

In March 2022, the central bank had directed Paytm Payments Bank to stop onboarding new customers and appoint an IT audit firm to conduct a comprehensive system audit.

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