Now Reading: SEBI issues show-cause notice to Paytm KMPs over 2023 disclosure
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SEBI issues show-cause notice to Paytm KMPs over 2023 disclosure
SEBI has issued a show-cause notice to key managerial personnel of Paytm parent One 97 Communications over the timing and classification of a December 2023 disclosure. The regulator questions whether the information…
The Story in Brief
SEBI has issued a show-cause notice to key managerial personnel of Paytm parent One 97 Communications over the timing and classification of a December 2023 disclosure. The regulator questions whether the information should have been classified as unpublished price-sensitive information. The recipients, including CEO Vijay Shekhar Sharma and CFO Madhur Deora, have 14 days to respond. Paytm said no financial impact is expected.
The December 6, 2023 announcement concerned Paytm's shift towards higher-ticket personal and merchant loans while reducing loans below Rs 50,000. The stock fell about 20% after the announcement, which came weeks after RBI tightened consumer lending norms.
The Indian Opinion
Some may see this notice as belated or targeting the messenger, but SEBI's focus on timely disclosure is crucial for market integrity. The December 2023 announcement clearly signalled a strategic shift that affected the stock price. Whether the KMPs deliberately delayed classification will be clarified when they respond within the 14-day timeline.
Sources (2): legal.economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
