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%.
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.
Paytm Founder and CEO Vijay Shekhar Sharma, speaking at the 7th JITO Incubation and Innovation Fund (JIIF) Foundation Day, compared his company to his daughter who faced an accident on her way to an entrance test. He also shared his learnings from the recent RBI action on Paytm Payments Bank, stating that it was emotionally challenging but taught him the value of fulfilling responsibilities professionally. Sharma also expressed his personal ambition of building a $100 billion company and his desire for global recognition for Paytm as an Indian firm. Meanwhile, the company has seen early signs of recovery and strong growth in its UPI business, with transactions worth Rs 1.24 trillion processed in May.
Paytm Founder and CEO Vijay Shekhar Sharma recently spoke at the 7th JITO Incubation and Innovation Fund (JIIF) Foundation Day, where he compared the company to his daughter who had met with an accident on the way to an entrance test. He also discussed the company's experience with the Reserve Bank of India (RBI) action on Paytm Payments Bank, acknowledging the emotionally challenging setback as a valuable lesson in fulfilling responsibilities professionally.
India's market regulator, Sebi, has tasked an expert group with discussing seven proposals aimed at safeguarding investors from risks related to stock market indices. This comes after a report highlighted that Indian consumers prioritize ingredient lists and nutritional value when making purchases. In the same vein, the Indian Overseas Bank has announced new features for its savings accounts, including a 'SB Smart' scheme for improved investment tracking.
Paytm's founder, Vijay Shekhar Sharma, spoke candidly about his personal and professional challenges after the Reserve Bank of India's action on Paytm Payments Bank earlier this year. He admitted that it was a learning lesson and that the company should have fulfilled its responsibilities better. Despite setbacks, Sharma's personal ambition is to build a USD 100-billion company and cement the Paytm brand's presence globally. He also shared his thoughts on the value and joy of taking a company public.
Paytm CEO Vijay Shekhar Sharma has reassured users that the Paytm app will continue to operate normally after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank. Existing users can still withdraw and use their balances without restrictions, and Paytm will collaborate with other banks for services like top-ups and transfers. The company remains committed to expanding its payment and financial services business, and various services like insurance and loans will not be affected by the restrictions. Paytm FASTags connected to the wallet will also continue to function normally.
The Reserve Bank of India (RBI) has barred Paytm Payments Bank from accepting deposits or top-ups in any of its key products, including customer accounts and wallets, from March. This decision comes after persistent non-compliances and concerns from the RBI. With over 100 million KYC-verified customers, this action could have a significant impact on Paytm and its founder, Vijay Shekhar Sharma. The early beginnings of scrutiny began in 2018, but the failure to address concerns led to the recent ban, possibly due to concerns over KYC compliance and data access to China-based entities.
The Reserve Bank of India has directed Paytm Payments Bank to halt all its core services, including accounts and wallets, starting in March. This action, although not a cancellation of Paytm's license, will greatly impact the company's operations and potentially its 100 million customers. The central bank has allowed customers to withdraw or utilize their balances without restrictions, and Paytm founder Vijay Shekhar Sharma has yet to comment on the issue.