Paytm might've committed forex fraud

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

PAYTM Payments Bank essentially asked to shut shop. Afaik here are the few implications 1. Stock market will react in a bad way to them 2. Worst affected are going to be FasTag users who bought from PayTM. 3. No deposits / credits allowed in any account. Withdrawal is allowed. 4. UPI not allowed after Feb

The show cause notice now about misrepresentation of facts. Not sure if they really made so many mistakes, or are being stopped from becoming something for other reasons.

I actually believe in a better India from the bottom of my heart where individuals who were not able to crack top tier colleges (IITS/IIMS/BITS) at a young age can still succeed in life on a comparable level, even when it comes to startup culture and raising funds. Everyone of us has seen their seniors struggle to raise funds just because they are not from prestigious colleges even when they have supplementary skill sets and I personally would like to break that mindset and would like to be PARTIAL towards products if they are built by NON-PRESTIGIOUS college alumni. I personally want to promote billions of dollars worth of businesses in India with alumni from every hardworking and smart working background and not just for the so called top colleges which only pushes unnecessary competition resulting in nothing but results equivalent to a lucky draw. I am biased because I believe indians need it to feel secure for starting their own venture one day and everyone should try with confidence that their product will speak more than the founder's name. Everyone deserves better

- 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.

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

Regulatory risk is making me a little uneasy staying at PayTM now. I will obviously stick around to see if I get rewarded for the risk I am taking but I just want to understand how do you all think about regulatory risk?