Paytm Officials Receive SEBI Show-Cause Notice, Regulator Questions Timing Of December 2023 Disclosure
SEBI has issued a show-cause notice to Paytm’s key managerial personnel over the timing and classification of a December 2023 disclosure. No financial impact is expected.
SEBI has issued a show-cause notice to Paytm’s key managerial personnel. |
Mumbai: Paytm’s parent company, One 97 Communications Limited, has informed the stock exchanges that its key managerial personnel have received a show-cause notice from the Securities and Exchange Board of India (SEBI).
The notice relates to the timing of a company disclosure made on December 6, 2023, and whether some information should have been treated as unpublished price-sensitive information.
Notice Details
According to the filing, SEBI issued the notice on August 11, 2026. The company disclosed the development to the BSE and National Stock Exchange on August 12.
The notice has been issued under rules that allow SEBI to hold an inquiry and impose penalties. It examines whether the timing of the disclosure met the requirements under the listing rules.
SEBI is also looking at how the information was classified under insider-trading rules. Unpublished price-sensitive information generally means important information that is not public and may affect a company’s share price when released.
Response Due
Paytm said the concerned key managerial personnel are studying the notice and will submit their response within the prescribed period.
The filing said the reply must be sent within 14 days from August 11, the date on which the notice was received.
No Penalty Yet
The company clarified that no penalty, restriction or sanction has been imposed in the matter so far. It also said no financial impact on One 97 Communications is expected from the notice.
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A show-cause notice gives the recipients an opportunity to explain their position before the regulator decides whether further action is required. Therefore, the notice itself does not mean that a violation has been established.
Company Disclosure
One 97 Communications made the announcement under Regulation 30 of SEBI’s listing rules, which requires listed companies to disclose certain important events to stock exchanges.
Company Secretary and Compliance Officer Sunil Kumar Bansal signed the filing. Paytm said the same disclosure would also be placed on its investor-relations website for public access.
Disclaimer: This article is based on a company filing and is for information only; investors should consult advisers before making decisions.
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