In response to a recent media report, Paytm said on Monday that Vijay Shekhar Sharma, the founder of the company, and the board members who were involved in its November 2021 IPO had received show-cause notices from the market regulator, SEBI.
A Moneycontrol report states that the show cause notice was given due to suspected factual misrepresentation.
One97 Communications, the parent company of Paytm, stated in a stock exchange filing that this is not a new development and that pertinent disclosures regarding the matter were already made in the company’s financial results for the quarter and year ended March 2024, as well as the quarter ended June 2024.
The Company is keeping the Securities Exchange Board of India (SEBI) informed on a regular basis and is making the required representations in this regard. Therefore, the financial results for the prior quarters that ended on June 30, 2024, and March 31, 2024, respectively, are unaffected,” Paytm continued.
According to the media report, the Reserve Bank of India (RBI), which had looked into Paytm Payments Bank earlier this year, provided information that led to the investigation’s start.
According to Paytm, “We are dedicated to transparency and compliance in all our actions and are committed to taking all necessary steps to ensure continued adherence to regulatory requirements.”
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