Sebi’s show cause notice is not a ‘new development,’ says Paytm

Sebi’s notice to Paytm: One 97 Communication, the parent company of Paytm, has clarified that the show cause notice served by the Securities and Exchange Board of India to its CEO and Co-founder Vijay Shekhar Sharma is ‘not a new development,’ and the company has disclosed the same in its quarterly earnings, according to a stock exchange filing. 

“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 wrote in the exchange filing. 

According to the exchange filing the company is in regular communication with the markets regulator and ‘making necessary representations regarding this matter.’ 

“Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively,” the company informed. 

As per the news reports during trading hours on Monday, August 26, Sebi had served a show cause notice to Paytm’s CEO Vijay Shekhar Sharma and its board members who served the company during its public listing in November 2021, according to Reuters citing media reports.

The reports claimed that Sebi has accused Paytm’s founder and CEO Vijay Shekhar Sharma of non-compliance with shareholder classification norms and not disclosing his stake as a key promoter to the company. 

One97 Communication has not denied any of these allegations in the exchange filing.