Mumbai: Sebi issued a show cause notice to Paytm in the March quarter over the grant of employee stock options (Esops) to founder and CEO Vijay Shekhar Sharma in FY22, the fintech disclosed in a stock exchange filing as part of its earnings statement on Friday.
Paytm had allotted 21 million Esops to Sharma during the year which were tied to achievement of specified milestones.“The company submitted its preliminary response and is in the process of seeking further information from Sebi in this regard,” Paytm said.
Paytm, which has been under the regulatory scanner since RBI’s move to restrict operations at its banking unit due to persistent non-compliance, said that the notice has had no impact on the financials of the June and March quarters. “Based on an independent legal opinion, it believes that the company is compliant with the relevant regulations,” Paytm said.
Paytm had allotted 21 million Esops to Sharma during the year which were tied to achievement of specified milestones.“The company submitted its preliminary response and is in the process of seeking further information from Sebi in this regard,” Paytm said.
Paytm, which has been under the regulatory scanner since RBI’s move to restrict operations at its banking unit due to persistent non-compliance, said that the notice has had no impact on the financials of the June and March quarters. “Based on an independent legal opinion, it believes that the company is compliant with the relevant regulations,” Paytm said.
We also published the following articles recently
SoftBank’s Paytm stake falls to under 1% from 18% in IPO
Read about SoftBank’s stake reduction in Paytm, leading to a decrease in FDI shareholding. Discover how domestic investors increased their stake in the company in the June quarter. Learn more about Paytm’s challenges with regulatory compliance and wider losses in Q4 FY24.
Read about SoftBank’s stake reduction in Paytm, leading to a decrease in FDI shareholding. Discover how domestic investors increased their stake in the company in the June quarter. Learn more about Paytm’s challenges with regulatory compliance and wider losses in Q4 FY24.
