Paytm Gets Permission From NPCI to Enroll New UPI Users, RBI banned its Banking Unit in January

Payment services firm Paytm has said that it has received permission to enroll new Unified Payment Interface (UPI) users. National Payments Corporation of India (NPCI) has given green signal to Paytm for this. A few months ago, the banking unit of Paytm was banned by the Reserve Bank of India (RBI).

The reason for this ban was compliance related issues. after this Paytm There was a huge fall in the share price. However, there has been some recovery in the last few months. Recently, markets regulator SEBI issued a show cause notice to Paytm’s founder and other board members for alleged irregularities in the company’s initial public offer (IPO) that was brought about three years ago. In this notice, a reply was sought for giving wrong information about the facts.

Paytm founder Vijay Shekhar Sharma was described as an employee of the company in the documents filed for this IPO, whereas he should have been placed in the category of large shareholder who can influence the company’s decisions. According to a media report, SEBI has questioned the then directors of the company regarding this. According to stock exchange data, Sharma was reported to be a public shareholder rather than a major shareholder. It was stated in these documents that there are no investors in the category of major shareholders of Paytm. Regarding this, Paytm had said, “The company is in regular touch with SEBI regarding this matter.” Along with this, Paytm has said that information about this notice was given in the filing of quarterly results.

SEBI alleges that the 2.1 crore employee stock options (ESOPs) given to Sharma are in violation of its rules on providing share-based employee benefits. Under these rules, large shareholders with the ability to influence company decisions cannot own ESOPs. Zomato, which provides food delivery service through Paytm’s movie and events ticketing business app, has prepared to buy it for $ 244.2 million (about Rs 2,049). Zomato plans to expand its ticketing business. This will increase Zomato’s presence in the online ticketing market for movies and live events. Reliance invested BookMyShow has the highest share in this market.

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