SEBI Issues Show Cause Notice To Paytm Over 2023 Disclosure
The Securities and Exchange Board of India (SEBI) has issued a show cause notice (SCN) to key managerial personnel (KMP) at fintech company Paytm, over alleged breaches of disclosure norms. The notice, dated August 11, addresses the manner in which the company disclosed information in December 2023. The fintech firm states the notice questions whether the announcement was properly classified as unpublished price sensitive information.
Paytm is reviewing the notice and will respond within two weeks, maintaining that the matter carries no financial impact on its operations. The regulator has asked the company's executives to justify the timing of the December 2023 disclosure, which announced a reduction in small-ticket loans. The move was part of Paytm's strategy to improve its loan portfolio.
Following the announcement, the company's shares dropped nearly 19% on BSE, causing other brokerage firms to lower their price targets for Paytm.
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- Paytm management gets Sebi show cause notice over timing of 2023 loan disclosure announcement economictimes.indiatimes.com
