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NEW DELHI: IPO-bound Paytm will flip its fee aggregator enterprise into a brand new subsidiary Paytm Funds Providers Restricted. This follows a directive from the Reserve Financial institution of India (RBI).
The corporate is looking for approval of the identical from its shareholders via an Extraordinary Normal Assembly on September 23. This can embody Paytm’s on-line fee gateway enterprise.
The transfer to switch fee aggregator enterprise into a brand new subsidiary is as per RBI’s tips. RBI tips from March 17, 2020 for regulation of Cost Aggregators (PAs) required PAs enterprise to be regulated and run by a separate firm, after acquiring the license from RBI.
Indicative ebook worth is within the vary of Rs 275-350 crore ($39m-$50 m) which will likely be paid to Paytm father or mother One97 Communications in 5 equal annual installments. The precise consideration will likely be derived on the idea ebook worth showing as of August 31, 2021.
The corporate is looking for approval of the identical from its shareholders via an Extraordinary Normal Assembly on September 23. This can embody Paytm’s on-line fee gateway enterprise.
The transfer to switch fee aggregator enterprise into a brand new subsidiary is as per RBI’s tips. RBI tips from March 17, 2020 for regulation of Cost Aggregators (PAs) required PAs enterprise to be regulated and run by a separate firm, after acquiring the license from RBI.
Indicative ebook worth is within the vary of Rs 275-350 crore ($39m-$50 m) which will likely be paid to Paytm father or mother One97 Communications in 5 equal annual installments. The precise consideration will likely be derived on the idea ebook worth showing as of August 31, 2021.
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