This subsidiary company of Paytm Paytm Money (Paytm Money) Payed Rs 45.5 lakh to settle the allegations of violation of rules related to SEBI’s technical disturbances. Paytm Mani decided to resolve several compliance issues through this payment. This agreement will help Paytm Money to avoid further legal proceedings. The settlement order issued by SEBI on February 13 stated that condolence notice was issued on 24 July 2024, alleging several violations on the stock broking firm.
These allegations were made on Paytm Money
Stock broking firm Paytm Money But the allegations made include not fixing the permitted limit for timely alert generation for all critical assets. Explain that getting alert on time is necessary for the safety of investors’ interests, especially when there is a fluctuations in the market. Not being able to meet this standard raised serious concerns about the company’s operational capacity and risk management process.
In addition, Paytm Money is alleged that he did not submit documentary evidence related to the peak load seen during the inspection period. Because of this, the company’s infrastructure capacity was questioned. This concern increased, especially when it came to the market to deal with sudden increase in traffic or technical disturbances.
In addition, Paytm Money is accused of not connecting all the critical systems to log analytics and monitoring applications. This system is necessary for real-time monitoring and potential system failure or violations quickly detecting. This plays an important role in maintaining the reliability of the operation and ensuring the security of investors’ assets.
In addition, it was found that Paytm Mani did not operate the live disaster recovery (DR) for the half -year -old half of April to September 2023. Dr drill means the disaster recovery drill. Disaster recovery drills is important to ensure that a company can quickly fix its operation in a technical failure or disaster. Not doing such drills for a long time raised serious concerns about the company’s ability to deal with emergency situations.
Through this agreement, Paytm Money survived long regulatory investigation and possible fine, although it would have to overcome these flaws and improve his system to avoid such problems in future.