Trouble! What happened to Paytm now, the company's shares fell by almost 9% – AnyTV News

The problems of One97 Communications, the parent company of the Paytm brand, are never ending. In the latest development, capital markets regulator SEBI has served summons on Vijay Shekhar Sharma and the directors of Paytm in the IPO violation case. According to a report by Moneycontrol, the summons are related to Sharma's alleged non-compliance with promoter classification norms. The investigation was initiated on inputs from the RBI, which was investigating Paytm Payments Bank. Following this, the company's shares fell by 8.88%.

This matter concerns November 2021

According to the news, the Securities and Exchange Board of India (SEBI) has served notice to Vijay Shekhar Sharma, founder of One97 Communications Ltd (Paytm's parent company) and board members who were in office when it went public in November 2021, for alleged misrepresentation of facts. The notices relate to Sharma's alleged non-compliance with promoter classification norms. The probe was initiated based on inputs from the Reserve Bank of India (RBI), which had investigated Paytm Payments Bank earlier this year, the people cited above said.

The share closed today at this price

Shares of One97 Communications finally closed at Rs 530 on the NSE, down 4.48 percent. On the BSE, the stock closed at Rs 530.05, down 4.41 percent. The report said that Sharma would not be eligible for employee stock options (ESOPs) after the listing as SEBI rules prohibit founders from getting ESOPs after an IPO.

Sharma’s share falls below 10%

According to the report, in Paytm's case, before filing the IPO documents, Sharma transferred his 5 percent stake to a family trust called VSS Holdings Trust. Before this transfer, Sharma owned 14.6 percent of One 97 Communication and after the transfer, Sharma's stake dropped to 9.6 percent – just below the 10 percent limit set in the rules.

Latest business news