Paytm: SEBI showcause not a new development

Paytm on Monday issued clarification stating that SEBI showcause notices to the digital payment app’s founder-CEO Vijay Shekhar Sharma and board members, being reported by sections of the press and media as a current development, was an old incident, and that the company “is in regular communication with” SEBI.

“Media Advisory: In response to recent media reports regarding the SEBI notice, we want to clarify that this is neither a new notice nor a new development. We had already disclosed this matter in our financial results for the quarter and year ending March 31, 2024, as well as the quarter ending June 30, 2024,” said a statement issued on the company’s official X handle, @Paytm.

Earlier in the day, sections of the press and media had run stories stating that the Securities and Exchange Board of India (SEBI) has issued showcause notices to Sharma, founder of Paytm’s parent organisation One97 Communications Limited, along with individuals who were associated with the company as board members when its initial public offering was launched in November 2021. The SEBI notice was issued to these individuals for allegedly misrepresenting facts. The probe was based on inputs provided by the Reserve Bank of India (RBI), following investigation into Paytm Payments Bank that was conducted earlier this year.

Paytm has now clarified the SEBI notice is not a new development but previously disclosed. The company has also reaffirmed transparency and compliance with the probe, adding that they have maintained regular communication with SEBI and made necessary representations regarding the matter.

“We would like to inform you that 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. Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively,” Paytm made known in a stock exchange filing on Monday evening.