Shares of One 97 Communications Ltd, the parent company of Paytm, climbed on February 12 after the board of the fintech company approved forming an advisory committee to strengthen compliance and regulatory matters. 

Paytm’s shares hit an intraday high of Rs 434.40, 3.46% higher than its last closing price on the National Stock Exchange (NSE). At 12:20 pm, the stock was trading 0.99% higher at Rs 424.

Paytm’s Board of Directors approved the formation of a Group Advisory Committee, headed by the former chairman of the Securities and Exchange Board of India (SEBI), Mr M. Damodaran, on February 9. The advisory panel will work closely with the board to further strengthen compliance and regulatory matters.

The members of the panel include veteran professionals like the former president of the Institute of Chartered Accountants of India (ICAI), Mukund Manohar Chitale, and a former governing council member of the Banking Codes and Standards Board of India nominated by the Reserve Bank of India.

Other banking experts, like former Chairman and Managing Director of Andhra Bank Ramachandran Ramachandran, are also on the committee.

The panel formation comes amidst the RBI’s restrictions on Paytm Payments Bank, citing prolonged non-compliance to prudential regulations.

In other news, an inter-ministerial committee is reportedly examining the foreign direct investment (FDI) flows from China into Paytm Payments Services, a subsidiary of One97 Communications Ltd.