The Securities and Exchange Board of India (SEBI) has issued a settlement order in the matter concerning One97 Communications, the parent company of Paytm, involving alleged irregularities related to Employee Stock Option Plans (ESOPs).
As per the order, Paytm founder Vijay Shekhar Sharma has settled the case with SEBI and has been barred from accepting any fresh ESOPs from listed companies for a period of three years. In addition to the restriction, Sharma and Paytm have each paid ₹1.11 crore to settle the matter.
SEBI’s action also includes Ajay Shekhar Sharma, who has settled the case by agreeing to the cancellation of 2.23 lakh ESOPs.
The settlement pertains to violations observed in the company’s ESOP framework and related disclosures. While neither party has admitted or denied the findings, the case has been settled through SEBI’s consent mechanism with monetary and non-monetary penalties imposed.
This development adds further regulatory scrutiny on the company at a time when Paytm has already been facing operational challenges post the RBI’s action against its payments bank arm.
