Paytm Stocks, Paytm Share Price Live Updates Today: Paytm shares recoup after fall following SEBI’s show-cause notice to CEO Vijay Shekhar Sharma

Paytm shares were up 1.70% on the NSE, trading at ₹539.40 as at 10.58 am.

Paytm shares fell Monday on news that India’s markets watchdog has sent its founder notices over alleged misrepresentation, a move the fintech pioneer said was not a “new development.”

The stock dropped as much as 8.9%, the most since February, after Moneycontrol reported that the Securities and Exchange Board of India issued a so-called show cause notice to founder Vijay Shekhar Sharma and some board members who served when the company was going public. 

Bloomberg

Market regulator SEBI has issued notice to fintech firm One97 Communications, which owns the Paytm brand, in the March 2024 quarter on employee stock options given to its MD and CEO Vijay Shekhar Sharma, according to the company filing on Monday.

In response to a query from stock exchanges, Paytm said the notice is not a new development, and it is in regulatory contact with the market regulator to make required representations.

According to Paytm’s financial year 2024 annual result filing, it had issued 2.1 crore employee stock options (ESOP) to Sharma in the financial year 2022.

SEBI had issued a show cause notice to Paytm on ESOP issued to Sharma.

“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 is in regular communication with the Securities Exchange Board of India (SEBI) and making necessary representations regarding this matter,” Paytm said in response to a stock exchange query.

The disclosure made on May 22 and July 19 said that Paytm has submitted its preliminary response and is in the process of seeking further information from the regulator in this regard.

“Based on an independent legal opinion obtained by the management, it believes that the Company is compliant with the relevant regulations. Accordingly, there is no impact on the financial results for the year ended March 31, 2024,” the filing said.

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Paytm shares traded at ₹541.25 on the NSE, up 2.05% as at 10.15 am.