Online insurance aggregator PB Fintech, parent to platforms like Policybazaar and Paisabazaar, has reportedly drawn the attention of income tax authorities due to regulatory oversights and KYC non-compliance.
What Happened: The income tax department has conducted a survey into PB Fintech, uncovering issues related to regulatory lapses and KYC non-compliance, Moneycontrol reported, citing a senior government official. Following the survey, the income tax department is reportedly likely to initiate assessment proceedings against the company.
Billionaire Azim Premji’s private equity fund, Premji Invest, and foreign venture capital investor Claymore Investments (Mauritius) recently divested stakes in PB Fintech via open market transactions.
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The income tax scrutiny is linked to concerns over regulatory compliance. The company’s robust growth in insurance premiums, improved renewals and better contributing margins contributed to its profitability in Q3. However, the income tax department is now scrutinising the regulatory aspects of the business.
Meanwhile, fintech Paytm has also been in the snares of regulators amid alleged non-compliance accusations, leading to a ban by the Reserve Bank of India on Paytm Payments Bank.
The ban prohibits the acceptance of fresh deposits and conducting credit transactions. The RBI identified significant irregularities in Paytm’s KYC process, exposing customers and depositors to risks.
Price Action: PB Fintech’s share price was down 3.29% at 932.95, recovering from a brief fall of nearly 10% earlier in the session.
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