Paytm: Vijay Shekhar Sharma did not receive any new notice from SEBI, Paytm assured investors

Vijay Shekhar Sharma: There was a stir among investors after the news of SEBI’s notice to Vijay Shekhar Sharma, founder and CEO of fintech company Paytm, came out on Monday. Due to this, Paytm shares have fallen by about 5 percent. Now the company has clarified on this matter and said that this is not a new notice. We had also given information about this notice while releasing the financial results for the quarter ended March 31 and June 30. The company has assured the stakeholders that it is following all the rules and instructions with complete transparency.

Notice received for not providing correct information during IPO

After the Paytm CEO received information about the notice, the stock of its parent company One 97 Communications fell by Rs 24.85 to close at Rs 530 on BSE. The media report claimed that apart from Vijay Shekhar Sharma, SEBI has also issued notices to several directors of the company. All of them were involved in Paytm’s IPO in November 2021. According to the report, this notice has been given for misrepresenting the facts and not properly following the rules related to the promoter. This investigation was started on the basis of inputs received from the Reserve Bank of India.

The notice being talked about in the reports is an old one

Paytm said in a stock exchange filing that the notice being talked about in recent media reports is old. We had informed about this earlier as well. Paytm assured all stakeholders that this is not a new development. We have been in constant touch with SEBI since receiving the notice. Also, we keep providing all the necessary documents from time to time. This issue also had no adverse effect on the results of the last financial year. We are ready to take all the necessary steps.

SEBI asked- Was Vijay Shekhar Sharma an employee or a promoter at the time of IPO

The report, quoting sources, claimed that a show cause notice was issued to Vijay Shekhar Sharma and several other board directors in November 2021. The report said that the investigation was conducted on the basis of whether Vijay Shekhar Sharma should be considered an employee of the company or a promoter while filing documents for the IPO. He had management control at the time of the IPO. According to SEBI rules, Vijay Shekhar Sharma was not eligible for Employee Stock Options (ESOPs). This is the second major case before the company after the RBI ban on Paytm Payments Bank.

Read this also

Janmashtami: Business worth Rs 25000 crore done on Janmashtami across the country, festive season starts with a bang