What's happening with PayTM seems very suspicious

Can someone explain what just happened to PayTM and if other FinTechs could be subject to something similar?

Any basic tech and internal audit can identify these lapses outright, there seems to be more to uncover.

Paytm is becoming the Enron of India with so many allegations of fraud and compliance issues.

As title says , there are so many narratives going around Could you give some insight how the management is working upon it

Really ? Even after receiving multiple notifications from them ? Even after submitting false compliance reports to them on various instances ? Even after they had put monetary penalty on you for continued non-compliance with KYC norms. You don’t know what exactly went wrong. That’s great 😄👍 Links : https://www.cnbctv18.com/finance/paytm-payments-bank-rbi-crackdown-the-inside-story-18970171.htm/amp https://timesofindia.indiatimes.com/gadgets-news/paytm-town-hall-no-job-cuts-and-other-key-things-that-ceo-vijay-shekhar-sharma-told-employees/amp_articleshow/107420639.cms

Spoke with banking folks, and they confirm that it's not like PayTM was doing something that other banks also don't

- One 97 Communications, Paytm's parent company, received an administrative warning from SEBI on July 15. - The warning pertains to related-party transactions with Paytm Payments Bank for FY22, lacking audit committee or shareholder approval. - SEBI noted non-compliances, highlighting transactions exceeding approved limits by Rs 360 crore. - Paytm asserts compliance with SEBI Listing Regulations but SEBI warns of future enforcement actions for non-compliance. - Earlier this year, RBI imposed business restrictions on Paytm Payments Bank, affecting its core operations. Source: Moneycontrol, The Arc

Controversial take below: No doubt that PayTM has been a poster-boy of Indian fintech startups. And Vijay Shekhar Sharma has been an exceptional entrepreneur: building PayTM into a homegrown brand and a multi-billion dollar public company. To that extent, PayTM does deserve a lot of respect from the entire startup community and all of us. But in current context, they were found to be persistently non-compliant on certain regulations: regulations which are not new and which exist for the protection of consumer interest and overall trust in the ecosystem. That PayTM failed to adhere to them, is squarely on them. That is just oversight or just negligence on their part, and they are facing the consequences of their (in)action. Why then this show of support for PayTM, who clearly is at fault here? Is it just sympathy for VSS and other PayTM employees who see a lot of their wealth dissipate overnight? Is it just teenage rebellion spirit against the "system" and believing startups are above them? Or is it just accepting that it is okay to cut corners, almost with the guilt of knowing we have erred similarly too? I get the respect for the company and VSS, I do. But to present them as heroes who have been hard done by regulators, is a grossly misleading narrative.

- SEBI has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and board members over alleged fact misrepresentation during the IPO. - The probe, initiated by inputs from RBI, questions Sharma's compliance with promoter classification norms. - Paytm clarified that this is not a new development and has been disclosed in financial results for March and June 2024 quarters. - SEBI's notices relate to Sharma's eligibility for ESOPs post-IPO, with allegations he should have been classified as a promoter. - The fintech major has faced regulatory challenges, including a recent fine of INR 47.12 Lakh for unpaid stamp duties. Source: [Inc42](https://inc42.com/buzz/fresh-trouble-for-paytm-as-sebi-issues-show-cause-notices-alleging-fact-misrepresentation-during-ipo/)