Paytm says SEBI notice to founder old development

NEW DELHI: One97 Communications, the parent company of Paytm, said that capital market regulator SEBI issuing show-cause notices to founder and CEO Vijay Shekhar Sharma, during the fintech major’s initial public offering (IPO) in November 2021 for alleged misrepresentation of facts is not a new development. Paytm added that it had previously disclosed the matter in its financial results for the quarter ending March and the quarter ending June.

“With reference to recent media reports, we would like to inform you that this is not a new development, as the company had already made relevant disclosures on this matter in its financial results for the quarter and year ended March 31, 2024, as well as the quarter ended June 30, 2024,” the company said in a stock exchange filing on Monday.

Shares of One 97 Communications plunged nearly 9% intraday to a low of Rs 505.25 on the BSE. The stock ended the Monday session at Rs 530, down by 4.48%. Paytm assured stakeholders that it is in regular communication with SEBI and has been making necessary representations regarding the issue.

“Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively. We are committed to taking all necessary steps to ensure continued adherence to regulatory requirements and remain dedicated to transparency and compliance in all our actions,” the company said.

According to reports, there were fresh notices sent to Sharma in relation to alleged non-compliance with promoter classification norms. The probe was initiated based on inputs from the Reserve Bank of India which had examined Paytm Payments Bank Ltd (PPBL) earlier this year.

The central bank already dealt a big to Paytm in January this year as it barred PPBL from onboarding new users and from offering various services owing to severe non-compliance.