Mumbai The Securities and Exchange Board of India (SEBI) has sent a show cause notice to Paytm founder and CEO Vijay Shekhar Sharma and its board members. According to the information, this notice has been given for misrepresenting the facts at the time of the IPO of One 97 Communications (Paytm's parent company) in November 2021.
During trading, Paytm's stock witnessed a decline of up to 9 percent. At the end of trading, the stock closed at Rs 530 with a decline of 4.48 percent. Paytm's stock has fallen by about 40 percent since the beginning of this year.
Several reports citing sources have said that the SEBI notice has alleged noncompliance with promoter classification rules.
Based on inputs from the Reserve Bank of India (RBI), SEBI had conducted an investigation into Paytm Payment Bank.
Paytm said that the company received the notice during the March 2024 quarter and the matter has already been resolved by giving an initial response. The company has given disclosure regarding this notice during the March 2024 quarter and June 2024 quarter results.
Sharma enjoys the rights of a promoter without the responsibilities and restrictions, said a blog post issued by Institutional Investor Advisory Services Ltd.
SEBI's new notice may make it difficult for Paytm to restore its payment aggregator license.
Paytm has recently received approval to apply for a license from the government.
Sharma is the founder and CEO of One 97 Communications Ltd, but according to stock exchange disclosures, he is not the company promoter.
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– / Written By Top News Bulletin
Image Credit: KhasKhabar.