In filing with exchanges Paytm denies report of FEMA case against company

The company had termed the reports to be entirely 'misleading, baseless and malicious'.

New Delhi: One 97 Communications Limited, the company that operates the fintech company Paytm today issued a clarification to the BSE and the NSE on certain news reports that had suggested that there was a FEMA (Foreign Exchange Management Act) violation case registered by the Directorate of Enforcement (ED) against Paytm.

In a filing on Wednesday One 97 Communications Limited said “This is to further clarify that One 97 Communications Limited (‘Company”), its subsidiaries and its associate, Paytm Payments Bank Limited, have over time been receiving notices and requisition for information, documents and explanations from the authorities, including Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents and explanations to the Authorities” the statement read.

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“The Company and its associate have continued to provide such information, documents and explanations to the Authorities as is being required by them. We would also like to clarify that our associate Paytm Payments Bank Limited does not undertake Outward Foreign Remittances. We have always made and will continue to make disclosures with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015” the statement added.

Earlier on February 5, Paytm refuted reports that had claimed that there was an investigation by the Enforcement Directorate on the company, saying that the federal agency is neither investigating One97 Communications, owner of the Paytm brand, nor its founder and CEO, Vijay Shekhar Sharma.

The company had termed the reports to be entirely ‘misleading, baseless and malicious’.

On February 9, the Board of One 97 Communications Limited announced the formation of a Group Advisory Committee chaired by former SEBI Chairman M Damodaran, to work with the Board in further strengthening compliance, and regulatory matters.

In an official release, the company said that the Committee included veteran professionals like MM Chitale, former president of the Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of the Banking Codes and Standards Board of India nominated by RBI.