The founder and CEO of Paytm, Vijay Shekhar Sharma, along with former board members of One97 Communications Ltd, have been served show-cause notices by SEBI for allegedly misrepresenting information during the company's IPO in November 2021. This comes after the markets regulator received inputs from the Reserve Bank of India and probed Paytm Payments Bank for non-compliance with promoter classification norms. As a result, Paytm's stock saw a decline and analysts predict a potential downside of 16%.
The Securities and Exchange Board of India (SEBI) has sent show-cause notices to Paytm Founder and CEO, Vijay Shekhar Sharma, and former board members of the company for alleged misrepresentation of facts during the company's initial public offering in November 2021. This move comes after Paytm shares declined during intra-day trading following reports of SEBI's probe into non-compliance with promoter classification norms. The average analyst price targets suggest a potential downside of 16%.
Markets regulator Securities and Exchange Board of India (SEBI) has issued a show cause notice to Paytm founder Vijay Shekhar Sharma and other board members for alleged misrepresentation of facts during the company's initial public offering (IPO) in November 2021. The notice, based on inputs from the Reserve Bank of India, questions Sharma's classification as a promoter and his eligibility for employee stock options post-IPO. Paytm's stock has plummeted since its IPO and the company has faced regulatory action from RBI over non-compliance issues.