Paytm Settles Allegations Of Technical Glitch Violations For Rs 45.5 Lakh With SEBI
Paytm was accused of failing to comply with SEBI's circular dated Nov 25, 2022, and an NSE circular dated Dec 16, 2022.
The market regulator, the Securities and Exchange Board of India, on Thursday allowed a digital financial subsidiary of Paytm to settle the compliance issue allegations by paying an amount of Rs 45.5 lakh.
The major allegation made by the regulator against Paytm Money was its technical glitch framework regulations.
The company was accused of failing to comply with SEBI's circular dated Nov 25, 2022, and an NSE circular dated Dec 16, 2022. One of the primary allegations against Paytm Money Limited was its failure to set the permissible limit of 70% for generating timely alerts for all critical assets.
This requirement is crucial for identifying and addressing potential system vulnerabilities before they lead to disruptions.
Additionally, the company allegedly did not submit documentary evidence regarding the peak load observed during the inspection period, which is necessary for evaluating system performance under high demand.
Further, the company was accused of not connecting all its critical systems with a log analytics and monitoring application. Such integration is essential for real-time tracking and mitigation of technical issues.
Another major lapse highlighted by SEBI was the failure to conduct a live Disaster Recovery (DR) drill for the period between April 2023 and September 2023. DR drills are essential to ensure business continuity in case of system failures or cyberattacks.
However, the Paytm subsidiary has decided to settle the issue without agreeing or denying the allegations and the High Powered Advisory Committee or the HPAC allowed the same.
