SEBI Issues Notices to Paytm Founder Over IPO Misrepresentation; Shares Fall 8%

Aug 26, 2024, 08:15 AM

The Securities and Exchange Board of India (SEBI) has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and board members who served during its initial public offering (IPO) in November 2021. The notices allege misrepresentation of facts during the IPO process. This action follows an investigation initiated based on inputs from the Reserve Bank of India (RBI), which had examined Paytm Payments Bank earlier this year. The investigation focuses on Sharma's alleged non-compliance with promoter classification norms. Following the news, Paytm's shares fell by 8%.