Paytm (One97 Communications) today was in focus after a Moneycontrol report stated that the Securities and Exchange Board of India (SEBI) has issued show-cause notices to Sharma and other board members regarding alleged misrepresentation of facts during the company’s Initial Public Offering (IPO) in November 2021. The notices are particularly focused on Sharma’s compliance with promoter classification norms, which further raised concerns among investors.
However, in an exchange filing today, August 26, the company said that the the reports are not about a new development and that the company had already made relevant disclosures on the matter. “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 said in an exchange filing.
Shares of Paytm slipped over 5% in trade following the news reports and ended at Rs 530.40 on the NSE, down 4.4%.
