Paytm senior executives get Sebi notice for 'timing' of 2023 regulatory disclosure
The Sebi notice, dated August 11, has asked the executives to explain the timing of a disclosure the company made on December 6, 2023, when it revealed plans to pull back on small loans under Rs 50,000 - mostly comprising its "buy now, pay later" offering. The move had come shortly after India's central bank tightened rules on unsecured lending.
The Securities and Exchange Board of India (SEBI) has served a show-cause notice to key managerial personnel of One 97 Communications, the parent company of Paytm, concerning the timing of a disclosure made in December 2023 and whether the information should be classified as unpublished price-sensitive information (UPSI). The notice, dated August 11, 2026, was received by the company's officials on the same day.
The recipients, typically including the CEO, CFO, and whole-time directors, have 14 days to respond. The company stated that it does not anticipate any financial impact from the notice. The matter pertains to Paytm's announcement on December 6, 2023, about its recalibration of personal loan distribution, with postpaid loans forming a smaller portion of the business.
This decision followed an expansion of the credit distribution business to concentrate on larger loans for consumers and merchants in partnership with banks and non-banking financial companies (NBFCs), which occurred three weeks after the Reserve Bank of India tightened consumer lending norms. The stock fell around 20 percent after the December 2023 filing.
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Also reported by 1 other outlet
- Paytm parent KMPs receive SEBI notice over 2023 disclosure timing thehindubusinessline.com
