Mumbai: The Markets regulator, the Securities and Exchange Board of India (SEBI), will not allow Paytm-like ‘contamination’ in the stock markets, its Chairperson Madhabi Puri Buch said on Tuesday.
The SEBI Chairperson added that Paytm’s problems were contained within its own banking system due to the absence of a Know-Your-Customer registration agency (KRA) system.
“A problem within Paytm stayed with Paytm and didn’t affect other banks. But if we allow Paytm into our system without KRA oversight, it could contaminate the entire market. We cannot allow that,” she said during an event at the National Stock Exchange (NSE) here.
Buch said that “our KRAs will always be in place to ensure that things are validated and to prevent any mischievous player from causing harm”.
She also added that “we will always have our KRA sitting in the middle to ensure that things are validated”.
“Otherwise, any mischievous player could come in and contaminate the entire system,” she noted.
Earlier this year, the Reserve Bank of India imposed certain restrictions on Paytm Payments Bank for lapses, including irregularities in the KYC process.
–IANS