One97 Communications, the guardian entity that operates model Paytm, is absolutely dedicated in direction of constructing its enterprise in accordance with regulatory compliances and prudent operations threat insurance policies, its founder and chief Vijay Shekhar Sharma stated in a shareholder letter, as a part of its annual monetary filings.
The corporate together with its group entities will likely be specializing in better regulatory engagement and better concentrate on compliance, each in letter and spirit, the corporate stated on Wednesday.
“We’re absolutely dedicated in direction of constructing our enterprise in accordance with regulatory compliances and prudent operations threat insurance policies,” stated Sharma. ”We’re additionally taking varied steps to strengthen the governance framework throughout our group entities (particularly regulated entities) by appointing subject material consultants as advisors or unbiased administrators, reviewing varied processes and many others. I’m guaranteeing that now we have better regulatory engagement and have a better concentrate on compliance, in letter and in spirit.”
These consultants will present worthwhile insights and steerage to make sure that Paytm’s governance practices are sturdy and in keeping with finest trade requirements. The corporate can be conducting unbiased validation to make sure transparency and equity in its operations. This method goals to create a compliance-first tradition throughout all group entities, significantly these which might be regulated.
Over the previous months, Paytm has taken important steps to bolster its governance framework, emphasizing its dedication to compliance, threat administration, and regulatory engagement. To boost the governance construction throughout its group entities, Paytm had shaped a Group Advisory Committee chaired by a former SEBI chairman M Damodaran. This committee has been tasked with evaluating present governance practices and making suggestions to the board, which is able to determine on an implementation and validation plan for these suggestions.
Paytm’s dedication to enhancing its governance framework extends to its affiliate entity, Paytm Funds Financial institution Restricted (PPBL). On March 1, 2024, Paytm and PPBL disclosed further measures to strengthen PPBL’s unbiased operations. As a part of this course of, Paytm and PPBL have mutually agreed to discontinue varied inter-company agreements with Paytm and its group entities. This transfer is designed to scale back dependencies and help PPBL’s governance, unbiased of its shareholders. The shareholders of PPBL have agreed to simplify the Shareholders Settlement (SHA) to additional improve PPBL’s governance framework.
Earlier, the board of One 97 Communications Ltd (Paytm) authorised the termination of inter-company agreements and the modification of the SHA. This strategic resolution underscores Paytm’s dedication to making sure sturdy governance and compliance throughout its operations.
These modifications mirror the corporate’s unwavering dedication to development, profitability, and sustaining the best requirements of governance and compliance. By investing in threat and compliance capabilities and guaranteeing better regulatory engagement, Paytm continues to place itself as a pacesetter within the monetary companies trade, devoted to innovation and excellence.
Paytm had beforehand introduced its intention to determine new partnerships with different banks to offer seamless companies for its clients and retailers, sustaining the excessive requirements of innovation and technology-enabled options that Paytm is understood for.
It has partnered with – Axis Financial institution, HDFC Financial institution, State Financial institution of India (SBI), and Sure Financial institution and has began transitioning its UPI customers to those banks. In February, the corporate partnered with Axis Financial institution for the nodal account and escrow account to proceed seamless service provider settlements.
