Paytm Money pays ₹45.5 lakh to settle market norms violation case with Sebi

Paytm Money settles Sebi case for alleged violations of technical glitch framework with ₹45.50 lakh settlement fee.

Paytm Money, an arm of fintech firm One97 Communications, on Thursday (February 13, 2025) settled with markets regulator Sebi a case pertaining to alleged violation of norms after paying ₹45.50 lakh in settlement amount.

The case stemmed from alleged violations of Sebi's technical glitch framework outlined in its circular dated November 25, 2022.

The order came after Paytm Money filed a settlement application in September last year, proposing to settle the instant proceedings initiated against it, without "admitting or denying the findings of facts and conclusions of law".

"...the instant adjudication proceedings initiated against the noticee vide SCN dated July 24, 2024, is disposed of in terms of the settlement regulations," Sebi's adjudicating officer Asha Shetty said in the order.

The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against Paytm Money Ltd for the alleged violation.

Thereafter, Sebi issued the SCN to Paytm Money on July 24, 2024, for the alleged violation of not settling the permissible limit of 70% for generation of timely alerts for all critical assets.

Further, the regulator alleged that Paytm Money "did not provide the documentary evidence with respect to peak load observations", and not connecting all its critical systems to a log analytics and monitoring application.