India, March 3 -- The Enforcement Directorate (ED) said that it issued a show cause notice to fintech giant Paytm for alleged Foreign Exchange Management Act (FEMA) violations as its parent One97 Communications failed to report its foreign investment to the Reserve Bank of India (RBI).

The ED, in a statement, said that it issued the show cause notice to Paytm and two of its subsidiaries for "contravention" of multiple provisions of FEMA involving transactions worth about INR 611 Cr, as per a PTI report.

This comes two days after the fintech major informed the bourses that it received show cause notice from the ED. The company said that the notice pertained to its acquisition of two companies - Little Internet Private Limited (LIPL) and ...