27 august 2024 : Shares of One 97 Communications, the parent company of Paytm, experienced a 3.5% increase, reaching ₹548.70 on the BSE today, August 27. This rise followed the company’s clarification concerning the show-cause notice issued by the Securities and Exchange Board of India (SEBI) to founder Vijay Shekhar Sharma and other former board members.
In response to recent media coverage, the company stated, “This is not a new issue, as we have previously disclosed relevant information in our financial results for the quarter and year ending March 31, 2024, as well as for the quarter ending June 30, 2024. We maintain ongoing communication with SEBI and are making the necessary representations regarding this situation. Therefore, there is no effect on the financial results for the quarters ending June 30, 2024, and March 31, 2024.” This information was provided in a filing to the exchanges.
SEBI has issued a show-cause notice to Vijay Shekhar Sharma for purportedly violating regulations related to employee stock option plans. Paytm confirmed that it is in continuous dialogue with SEBI and has submitted the required representations. The company highlighted that in the fiscal year 2021-22, it granted 21 million employee stock options (ESOPs) to Vijay Shekhar Sharma, contingent upon the achievement of specific milestones.