The Securities and Exchange Board of India (SEBI) has issued show-cause notices to Vijay Shekhar Sharma, founder of One 97 Communications Ltd (the parent company of Paytm), and former board members from its November 2021 IPO according to the Moneycontrol report.
Related News |
Zomato Acquires Paytm’s Entertainment Ticketing Business For Rs 2,048 Crore
The report added that the notices concern alleged misrepresentation of facts and non-compliance with promoter classification norms. This investigation follows inputs from the Reserve Bank of India (RBI), which had previously examined Paytm Payments Bank earlier this year. The probe focuses on potential discrepancies related to Paytm’s initial public offering.
Following the news, Paytm's shares dropped more than 5%, during intraday trading, the stock fell to a low of Rs 505.55 and closed at Rs 530. Over the past year, Paytm’s shares have reached a high of Rs 998.30 and a low of Rs 310.
Related News |
School Assembly Headlines August 22: PM Modi Arrives in Warsaw, Poland; Zomato to Acquire Paytm’s Entertainment ticketing, Weather updates & more
Paytm On Sebi Show-Cause Notice
One 97 Communications, the operator of fintech platform Paytm, clarified that the show-cause notice mentioned in recent media reports is not a new development. The company stated that it had already disclosed the relevant details in its financial results for the quarters ending in March and June 2024.
Paytm further emphasized that the notice has no impact on the financial results for the previous quarters ending on June 30, 2024, and March 31, 2024.
As per the company's filing on the exchange, "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 is in regular communication with the Securities Exchange Board of India (SEBI) and making necessary representations regarding this matter. Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively."
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)