Overview

• The Enforcement Directorate has named One Sigma Technologies Pvt Ltd and director Nithya Nand Sharma in the complaint for alleged FDI and convertible note breaches amounting to Rs 913.75 crore.
• Simpl is accused of raising Rs 648.87 crore in U.S. foreign direct investment and issuing Rs 264.88 crore in convertible notes under the 100% automatic route without obtaining government approval.
• An ED investigation under FEMA found that Simpl’s core buy-now-pay-later services fall under unregulated financial activities, which require prior clearance under an RBI circular.
• The agency alleges that by classifying its business as IT and computer services, Simpl misrepresented its true financial-services operations to exploit the automatic approval route.
• The formal complaint, filed before the adjudicating authority under Section 13 of FEMA, initiates proceedings that will determine any penalties and compliance measures.