The board of One97 Communications Ltd (OCL), the parent firm of Paytm, on Friday introduced the organising of a three-member group advisory committee to strengthen company governance issues throughout the agency. Paytm Funds Financial institution additionally floated a request for proposal (RFP) from exterior auditors.
Former Securities and Alternate Board of India (Sebi) chairman M Damodaran will head this committee and work with the OCL board to strengthen compliance and regulatory issues, the corporate stated in an alternate submitting.
These selections got here a day after the Reserve Financial institution of India (RBI) clarified that it had barred Vijay Shekhar Sharma-led funds Financial institution from conducting most of its operations, together with deposit-taking and fund transfers, with impact from March 1 attributable to “persistent non-compliance”.
The opposite members are Mukund Chitale, former president of the Institute of Chartered Accountants of India; and Ramachandran Rajaraman, former chairman and managing director of Andhra Financial institution, and a member of the advisory board of the Central Vigilance Commission. The panel will take into account including extra members if essential.
In the meantime, Paytm Funds Financial institution has floated a request for proposal (RFP) from exterior auditors for an audit of the corporate’s compliance processes.
Sources within the know additionally claimed that talks on partnerships for nodal accounts between Paytm and banks had been nearing completion. The names of the banks aren’t instantly identified.
Nodal accounts are financial institution accounts opened by intermediaries to carry funds on behalf of shoppers and distributors. In response to regulatory motion in opposition to the funds financial institution, the regulator introduced the termination of nodal accounts of One97 Communications and Paytm Funds Providers by February 29.
Queries despatched to Paytm relating to its RFP and the standing of partnership talks didn’t elicit a response until the time of going to press. The OCL shares closed 6.09 per cent decrease at Rs 419.85 apiece on the BSE on Friday.
Final week, issues over large-scale know-your-customer violations, resulting in money-laundering issues, prompted regulatory actions in opposition to Paytm Funds Financial institution.
Different issues included not sustaining an arm’s size with the promoter group (OCL), non-disclosure of funds to promoters, false submissions of compliance, and an general sense of disregard for compliance and transparency.
In a separate be aware, OCL denied reviews of an Enforcement Directorate investigation in opposition to the corporate, its associates, and the founder and chief govt.
The banking regulator had on Thursday clarified that its directive issued final month involved Paytm Funds Financial institution, not the Paytm app. The RBI additionally introduced plans to launch a listing of regularly requested questions (FAQs) on the funds financial institution concern subsequent week.
First Revealed: Feb 09 2024 | 11:47 PM IST