Live
- Bihar: Deceased patient's eye missing, RJD condemns incident at Nalanda Medical College
- Rammurthy Naidu's Last Rites Held in Naravari Palli
- PM Modi receives ceremonial welcome in Abuja, begins bilateral talks with Nigerian President Tinubu
- Goods traffic doubles on the new railway freight corridors
- BGT 2024-25: I’d like to see him make one more Test ton in Australia, says Johnso
- Harassment due to ED raids forced Kailash Gehlot to quit, hints Kejriwal
- Kailash Gehlot exit: BJP goes on the offensive against 'corrupt' AAP govt
- PM Modi pays homage to ‘the great’ Balasaheb Thackeray on his death anniversary
- One who cares for Delhi will not stay with gang of robbers: Sachdeva on Gahlot's resignation
- From Self-Doubt to Self-Love: Vange Cain’s Inspirational Path
SEBI sends show-cause notices to Paytm CEO, directors over IPO irregularities
The Securities and Exchange Board of India (SEBI) has reportedly issued show-cause notices to Paytm Founder and CEO, Vijay Shekhar Sharma, and erstwhile board members of One 97 Communications Ltd (Paytm’s parent company), over alleged misrepresentation of facts during the company’s initial public offering (IPO) in November 2021.
Mumbai: The Securities and Exchange Board of India (SEBI) has reportedly issued show-cause notices to Paytm Founder and CEO, Vijay Shekhar Sharma, and erstwhile board members of One 97 Communications Ltd (Paytm’s parent company), over alleged misrepresentation of facts during the company’s initial public offering (IPO) in November 2021.
Paytm shares declined as much as 9 per cent during the intra-day trading and closed 4.48 per cent down at Rs 530 apiece. The average of 12-month analyst price targets implies a potential downside of 16 per cent.
According to multiple reports citing sources, the SEBI notices also allege non-compliance with promoter classification norms.
The markets regulator probed Paytm Payments Bank after receiving inputs from the Reserve Bank of India (RBI).
Paytm of SEBI did not immediately respond to reports.
Sharma apparently enjoys the rights of a promoter without the responsibilities and restrictions, according to a recent blog post by Institutional Investor Advisory Services Ltd.
In 2023, the Institutional Investor Advisory Services raised questions on Sharma’s stake in the parent firm, as well as the employee stock options granted to him by the company ahead of the IPO.
The latest SEBI notice may make it difficult for Paytm to get its payment aggregator licence reinstated.
Paytm recently got a government nod to apply for the licence after it assured authorities that the funds in Paytm Payments Services accounts are not from foreign sources.
Sharma is the founder and CEO of One97 Communications Ltd, but is not classified as promoter, according to stock exchange disclosures.
As a non-retiring director, Sharma chairs the company’s board and has the right to a board seat if he holds at least 2.5 per cent stake. He would've also not been granted the ESOPs had he been classified as a promoter.
