The Securities and Exchange Board of India (SEBI) has issued show-cause notices to Vijay Shekhar Sharma, Paytm Founder and CEO, and former board members of One 97 Communications Ltd, regarding alleged misrepresentation during the company’s November 2021 IPO. The notices also cite non-compliance with promoter classification norms.
Following the news, Paytm’s stock fell 9% intraday and closed 4.48% lower at ₹530. The average analyst target suggests a potential further decline of 16%. The SEBI probe, influenced by inputs from the Reserve Bank of India (RBI), could impact Paytm’s efforts to reinstate its payment aggregator license.
Paytm has yet to respond to the SEBI notices. Recent scrutiny also questioned Sharma’s stake and stock options granted before the IPO.
