Paytm shares fall (Image source: iStockphoto)
The Securities and Exchange Board of India (SEBI) has issued show cause notices for Vijay Shekhar SharmaFounder of One 97 Communications Ltd (the parent company of Paytm) and former board members since November 2021 IPO according to Moneycontrol report.
The report added that the notices relate to alleged misrepresentation of facts and non-compliance with promoter classification norms. This investigation is based on inputs from the Reserve Bank of India (RBI), which had already scrutinised Paytm Payments Bank earlier this year. The investigation is focused on possible discrepancies related to Paytm’s initial public offering.
Following the news, Paytm shares fell by over 5%; during intraday trading, the stock fell to a low of Rs 505.55 and closed at Rs 530. Over the past year, Paytm shares have touched a high of Rs 998.30 and a low of Rs 310.
Paytm shows cause notice to Sebi
One 97 Communications, the operator of fintech platform Paytm, has clarified that the show-cause notice mentioned in the latest media reports is not a novelty. The company said it had already disclosed the relevant details in its financial results for the quarters ending March and June 2024.
Paytm further stressed that the notice has no impact on the financial results for the previous quarters ended June 30, 2024 and March 31, 2024.
According to the company’s filing with the stock 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 is making necessary disclosures in respect of this matter. Accordingly, there is no impact on the financial results for the previous quarters ended June 30, 2024 and March 31, 2024, respectively.”
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