SUMMARY
- Paytm confirmed receiving a SEBI show-cause notice, disclosed earlier in its financial reports for March and June 2024.
- Paytm maintains regular communication with SEBI and emphasizes continued regulatory compliance.
- The company has also proposed board remuneration reductions and sold its entertainment business to Zomato.
Paytm responded on Monday to a recent media report regarding show-cause notices issued by the Securities and Exchange Board of India (SEBI) to the company’s founder, Vijay Shekhar Sharma, and board members during its Initial Public Offering (IPO) in November 2021. According to the report by Moneycontrol, the notice alleged a misrepresentation of facts.
In a stock exchange filing, Paytm’s parent company, One97 Communications, clarified that this matter is not a new development. The company had previously disclosed the issue in its financial results for the fiscal year ending March 2024, as well as the quarter ending June 2024. Paytm reassured investors that it has maintained open communication with SEBI and is making the necessary representations on the issue. As a result, there has been no financial impact on the company’s results for the quarters ending June 30, 2024, and March 31, 2024.
The report also mentioned that the probe was initiated after the Reserve Bank of India (RBI) conducted an examination of Paytm Payments Bank earlier this year. Paytm reaffirmed its commitment to transparency, regulatory adherence, and continued compliance across all operations.
In related news, Paytm proposed a reduction in the remuneration for its board of directors last week, while also seeking to reappoint Elevation Capital founder Ravi Chandra Adusumalli to its board. This announcement coincided with the company’s decision to sell its entertainment business to foodtech giant Zomato.
