Paytm discontinues inter-company agreements with payments bank, shares gain

One97 Communications, the parent company of Paytm, said it has decided to discontinue various inter-company agreements with its associate Paytm Payment Bank.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, the Board of Directors of the Company on March 01, 2024, at 07:28 A.M. (IST), through circulation, have approved the discontinuation of various inter-company agreements with its associate entity, Paytm Payments Bank Limited (PPBL)," the company said in a statement.

"Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders. The Board of OCL approved the termination of agreements and amendment of SHA on March 1, 2024," the statement added.