Former SEBI chief Damodaran will lead
Mumbai (EMS). The Board of Directors of One97 Communications, the promoter company of Paytm, has decided to constitute an advisory committee to further improve and strengthen the business governance in the company. The company told the stock exchanges that this three-member committee will be headed by M Damodaran, former chairman of the Securities and Exchange Board of India (SEBI). Recently, the Reserve Bank of India (RBI) had said that it has also taken action due to continuous non-compliance of rules by Paytm Payments Bank and there is no fault of Paytm app in it. The company said that the advisory committee will work closely with the board of directors of One97 Communications to strengthen the compliance and regulatory regime. The committee also includes Mukund Chitale, former president of the Institute of Chartered Accountants of India (ICAI) and Ramachandran Rajaraman, former chairman and managing director of Andhra Bank and member of the advisory board of the Central Vigilance Commission. If needed, more members will also be included in the committee.
One97 Communications said that the company management is committed to the continued growth of the business while adhering to the regulatory and compliance regime. The company has taken this step after the RBI order to stop Paytm Payments Bank from doing most of the operations including deposit and payment from March 1. According to a news, Paytm Payments Bank has issued a letter of intent (RFP) to appoint external auditors. These auditors will check the compliance process of the company. According to sources, negotiations between Paytm and banks for sharing of nodal accounts are going to be completed soon. But the names of the banks coming forward to take charge of these accounts are not yet known.
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