Fresh Trouble For Paytm As SEBI Issues Show Cause Notices Alleging Fact Misrepresentation During IPO

• SEBI has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and board members over alleged fact misrepresentation during the IPO.
• The probe, initiated by inputs from RBI, questions Sharma's compliance with promoter classification norms.
• Paytm clarified that this is not a new development and has been disclosed in financial results for March and June 2024 quarters.
• SEBI's notices relate to Sharma's eligibility for ESOPs post-IPO, with allegations he should have been classified as a promoter.
• The fintech major has faced regulatory challenges, including a recent fine of INR 47.12 Lakh for unpaid stamp duties.

Source: Inc42