Paul Merchants has received a total monetary penalty of ₹20,000 from the Reserve Bank of India (RBI) for violations of the Foreign Exchange Management Act, 1999. The penalties were imposed on its Cochin and Tanda branches following inspections under the Master Directions on Money Changing Activities and the Liberalised Remittance Scheme.

The company filed an intimation with BSE Limited on October 1, 2026, disclosing the receipt of two speaking orders dated October 1, 2026. Each order carried a penalty of ₹10,000. The actions were taken under Section 11(3) of the FEMA, 1999.

Nature of Violations and Penalties

The RBI identified specific procedural lapses at two distinct branches. The table below details the specific contraventions and the corresponding financial impact:

The Cochin branch violation involved receiving a rupee equivalent amount in a single retail sale transaction through UPI transfers from two different accounts. One of these accounts was linked to a family member of the travelling customer, which breached the stipulated conditions for money changing activities.

At the Tanda branch, the company failed to obtain the necessary customer signature on Form A2 for a specific transaction. The filing notes that this procedural error was subsequently rectified by the branch.

Impact Assessment

Paul Merchants stated that the only quantifiable impact is the monetary penalty of ₹20,000. The company asserted that it does not foresee any other material impact on its financial, operational, or other business activities resulting from these orders. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Paul Merchants has declared the final voting results for its 42nd Annual General Meeting held on September 18, 2026. All four resolutions placed before shareholders were passed with the requisite majority.

The meeting concluded at 12:52 pm, with the scrutinizer, Mr. Kanwaljit Singh Thanewal, issuing the consolidated report on September 19, 2026. Voting was conducted through remote e-voting and an e-voting system during the AGM via video conferencing.

Agenda and Resolutions

Shareholders deliberated on four key resolutions. The first two ordinary resolutions concerned the adoption of the Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2026, along with the reports of the Board of Directors and Auditors.

The third resolution sought the appointment of Ritesh Vaid as a Director in place of his retirement by rotation. The fourth, a special resolution, proposed his reappointment as Designated Whole Time Director for a five-year term effective October 1, 2026.

Voting Results

A total of 2,312,158 votes were polled out of 3,084,000 shares held on the record date of September 11, 2026, representing a participation rate of 74.97%. Promoter and promoter group shareholders voted in favor of all resolutions with 100% support. Public non-institutional shareholders also voted overwhelmingly in favor.

Director Profile and Remuneration

Mr. Ritesh Vaid (DIN: 09433856) holds a Master's degree in Business Administration and possesses approximately 24 years of professional experience. He has been associated with the company since October 1, 2008, in various capacities and has served as Designated Whole Time Director since February 10, 2022. His expertise includes leadership, business development, dealer and branch network development, channel management, and compliance management. Prior to joining Paul Merchants, he was associated with Wall Street Finance Private Limited.

The special resolution approved his remuneration for the period commencing from October 1, 2026, and ending on September 30, 2029, within an annual range of ₹30.00 lakhs to ₹50.00 lakhs. The company confirmed that Mr. Vaid is not related to any other director or key managerial personnel and is not debarred from holding office by any statutory authority.

Attendees

Key management personnel present included Managing Director Rajneesh Bansal and Chief Financial Officer Sushil Jindal. Statutory Auditors M/s Rajiv Goyal and Associates and Secretarial Auditor M/s Anil Negi & Company were also in attendance. Fifty-one shareholders attended the virtual session, ensuring the requisite quorum was met throughout the meeting.