The Securities and Exchange Board of India (Sebi) has issued show-cause notices to Vijay Shekhar Sharma, founder of One 97 Communications Ltd (Paytm’s parent), and board members who served during its initial public offering in November 2021 for alleged misrepresentation of facts, two people with direct knowledge of the matter, moneycontrol.com reported.
Shares of One97 Communications Ltd., parent company of payments aggregator Paytm fell as much as 8%.
The report states citing sources that market regulator Securities and Exchange Board of India (SEBI) has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and board members who served at the company during its Initial Public Offering (IPO) in November 2021 for alleged misrepresentation of facts.
The notices issued by SEBI pertain to Sharma’s alleged non-compliance with promoter classification norms, the report further stated, adding that the probe was initiated based on inputs from the Reserve Bank of India (RBI), which had earlier imposed restrictions on the Paytm Payments Bank earlier.
News18.com has not independently verified this report.
Shares of Paytm are currently trading 8 per cent lower at Rs 512.25. The stock had gone public in 2021 at an IPO price of Rs 2,150, a level that it has not seen till date and fell to an all-time low of Rs 310 earlier this year.
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