Paytm receives RBI compounding order, to pay Rs 18.7 lakh for Fema contravention
One 97 Communications, which operates fintech firm Paytm, has received a compounding order from the Reserve Bank of India ( RBI) for contraventions under the Foreign Exchange Management Act ( Fema) linked to past investments in its subsidiary, Little Internet.
In a stock exchange filing on Monday, the company said the RBI has imposed a compounding fee of Rs 18.76 lakh in connection with certain investments made in Little Internet Private Limited by Little Internet Singapore.
The underlying transactions, with an aggregate value of about Rs 33 crore, pertained to the period between March 2016 and June 2017.
Paytm said it is in the process of paying the amount.
A compounding order allows an entity to settle regulatory contraventions by paying a monetary penalty, without facing further adjudication or prosecution.
In a related development, the Directorate of Enforcement (ED) on December 19 terminated Fema proceedings against Nearbuy India following an RBI compounding order, after the company paid a penalty of Rs 4.28 lakh.
In a stock exchange filing on Monday, the company said the RBI has imposed a compounding fee of Rs 18.76 lakh in connection with certain investments made in Little Internet Private Limited by Little Internet Singapore.
The underlying transactions, with an aggregate value of about Rs 33 crore, pertained to the period between March 2016 and June 2017.
Paytm said it is in the process of paying the amount.
A compounding order allows an entity to settle regulatory contraventions by paying a monetary penalty, without facing further adjudication or prosecution.
In a related development, the Directorate of Enforcement (ED) on December 19 terminated Fema proceedings against Nearbuy India following an RBI compounding order, after the company paid a penalty of Rs 4.28 lakh.
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