The Securities and Exchange Board of India (SEBI) has passed a settlement order in the matter of Paytm Money Limited, resolving the case for a settlement amount of ₹45.5 lakh.
Allegations Against Paytm Money
SEBI initiated adjudication proceedings against Paytm Money for violations of regulatory provisions related to the technical glitch framework.
The key allegations included:
- Not setting the permissible limit of 70% for timely alerts on critical assets.
- Failure to submit documentary evidence regarding peak load observed during the inspection period.
- Not connecting critical systems to Log Analytics and Monitoring Applications.
- Failure to conduct a live Disaster Recovery (DR) drill for the period April 2023 – September 2023.
Settlement Process
Paytm Money filed a settlement application with SEBI on September 17, 2024, under the SEBI (Settlement Proceedings) Regulations, 2018. After discussions with SEBI’s Internal Committee, Paytm Money revised its settlement terms. The High Powered Advisory Committee (HPAC) reviewed the case on November 18, 2024, and recommended settling the matter with a payment of ₹45.5 lakh. The Panel of Whole Time Members of SEBI approved the recommendation on January 27, 2025.
Paytm Money remitted the settlement amount on February 6, 2025, and SEBI confirmed receipt, leading to the closure of the adjudication proceedings on February 13, 2025.
Future Implications
While the settlement concludes the current case, SEBI retains the right to take further enforcement action if:
- Any representations made by Paytm Money during the settlement process are later found to be false.
- Paytm Money violates any clauses or undertakings provided during the settlement proceedings.
This settlement provides regulatory clarity for Paytm Money while reinforcing SEBI’s strict oversight on compliance issues in the financial services sector.
