Sebi notice to Vijay Shekhar Sharma:Vijay Shekhar Sharma, founder and CEO of Paytm’s parent company One 97 Communication Limited, has been served with a show-cause notice by the Securities and Exchange Board of India (Sebi), according to media reports.
Sebi has reportedly charged Vijay Shekhar Sharma and the board members of the company who served during the company’s initial public offering (IPO) of misrepresentation of facts and failure to comply with the rules for classifying promoters.
Reserve Bank of India (Reserve Bank of India) which ordered the closure of Paytm’s banking arm, Paytm Payments Bank, also contributed inputs to Sebi’s investigation into the case, according to reports.
Sebi maintains that Vijay Shekhar Sharma should have disclosed his stake in the company as a promoter as he had management control rather than an employee by disclosing the stake in the company. IPO documents. Following this discovery, the market regulator has also issued a notice to the directors of the company that promoted Sharma’s status.
Previously, Reserve Bank of India has ordered Paytm Payments Bank to accept deposits and onboard new customers over compliance violations and allegations of money laundering and questionable transactions on the platform.
The company’s shares fell as much as nine per cent after the news broke on Monday, hitting an intraday low of Rs 505.55. At 02:48 am, the company’s shares were trading 4.63 per cent or 25.70 points lower at Rs 529.15 apiece.
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