Paytm share price dropped sharply to the day's low Rs 505.55 per share on the NSE in Monday's trade after founder Vijay Shekhar Sharma and board members faced markets regulator SEBI's show-cause notices over IPO breaches.
Shares of Paytm dropped shortly after Moneycontrol reported that Securities and Exchange Board of India (SEBI) issued show-cause notices to Vijay Shekhar Sharma and board members who served during its initial public offering in November 2021 for alleged misrepresentation of facts.
Paytm stock dropped 8.88 percent to Rs 505.55 apiece on the NSE. At the time of publishing, the counter was trading at Rs 524.10 per share, down 5.54 percent.
The recent notices pertain to Sharma’s alleged non-compliance with promoter classification norms. The probe was initiated based on inputs from the Reserve Bank of India (RBI), which had examined Paytm Payments Bank earlier this year.
Paytm in its clarification said it is in regular communication with SEBI and making necessary representations regarding this matter. "Accordingly, there is no impact on the financial results for previous quarters ended June 30, 2024, and March 31, 2024, respectively," it added.
In 2024 so far, the stock has dropped 18.17 percent as per BSE. In the last one year, it gave negative returns of 41.20 percent.
On January 31 this year, the Reserve Bank of India (RBI) imposed restrictions on PPB due to "persistent non-compliance and ongoing significant supervisory concerns." The RBI directed PPB to close most of its operations, including deposits, credit products, and digital wallets, by February 29.
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