Sebi issued a show-cause notice to Vijay Shekhar Sharma for an alleged violation of rules governing employee stock option plans.
Shares of Paytm’s parent company, One 97 Communications, were up 3.5% at ₹548.70 on the BSE today (August 27). This followed the company’s clarification regarding the Sebi show-cause notice issued to founder Vijay Shekhar Sharma and other former board members.
Paytm founder and CEO Vijay Shekhar Sharma during an event in Mumbai, (PTI)
“With reference to recent media reports, 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,” the company said in a filing to the exchanges.
Sebi issued a show-cause notice to Vijay Shekhar Sharma for an alleged violation of rules governing employee stock option plans. Paytm said that the company is in regular communication with Sebi and has made the necessary representations. The company noted that in 2021-22, it granted 21 million employee stock options (ESOPs) to Vijay Shekhar Sharma as its Chief Executive which was linked to achievement of specified milestones.
Over the past year, Paytm’s shares have fallen 40%, with a 16.3% decline so far this year.
News/Business/ Paytm shares up 3% after clarification on Vijay Shekhar Sharma’s Sebi notice
