Paytm Money Pays Rs45.5 Lakh To Settle Technical Glitch Case
Moneylife Digital Team 13 February 2025
Paytm Money, the stockbroking subsidiary of One97 Communications Ltd, paid Rs45.50 lakh to settle a technical glitch case with the Securities and Exchange Board of India (SEBI). The settlement was made without the company admitting or denying SEBI findings from its investigation into alleged violations of regulatory norms.  
 
The case revolved around accusations of non-compliance with SEBI technical glitch framework, outlined in a circular issued on 25 November 2022. 
 
According to SEBI, Paytm Money failed to set the required 70% threshold for generating timely alerts for all critical assets. Additionally, the company was accused of not providing documentary evidence of peak load observations during the inspection period. 
 
Further allegations included failure to connect all critical systems with the log analytics and monitoring application and not conducting a live disaster recovery (DR) drill for six months between April and September 2023.  
 
On 9 July 2024, SEBI appointed an adjudicating officer to investigate the alleged violations. Subsequently, a show-cause notice (SCN) was issued on 24 July 2024, asking Paytm Money to explain why an inquiry should not be conducted and a penalty imposed.  
 
Seeking to resolve the matter, Paytm Money filed a settlement application on 17 September 2024, proposing to settle the proceedings without admitting or denying any wrongdoing.  
 
The high-powered advisory committee (HPAC) of SEBI reviewed the settlement terms during a meeting on 18 November 2024 and recommended that the case be settled upon payment of the proposed amount. The panel of whole-time members (WTM) at SEBI approved the recommendation on 27 January  2025, the market regulator says in a three-page order.
 
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