Paytm's top executives pay Rs 3.32 crore to settle alleged SEBI norms violations

The settlement order was issued by Sebi on January 17. In the showcause notice dated May 17, 2024, issued to the entities, the following allegations were made:

*Noticee No. 1 (Amit Khera)

Failure to ensure conformity with the regulatory provisions applicable to the listed entity in letter and spirit, in violation of Regulation 6 (2) of LODR Regulations, 2015

*Noticees No. 2 and 3 (Ashit Ranjit Lilani and Neeraj Arora)

*Independent Directors being part of NRC failed to discharge duties with unbiased and independent approach while decision-making w.r.t. matters involving benefits to Mr. Vijay Shekhar Sharma (MD&CEO, Paytm) and his relatives, in violation of Regulation 4 (2) of LODR Regulations, 2015.

*Directors approved and singed offer documents containing incorrect statements and incomplete disclosures, in violation of Regulation 245(1) and (2) of ICDR Regulations, 2018.

Noticees 4, 5, 6, 7 and 8 (Douglas Feagin, then Non-Executive Nominee Director; Munish Varma, then Non-Executive Nominee Director; Ravi Chandra Adusumalli, then Non-Executive Nominee Director; Mark Schwartz, then Independent Director and Pallavi Shardul Shroff, then Independent Director)

Directors being part of Board of Director as on date of Prospectus authorized and signed offer documents containing incorrect statement and incomplete disclosures w.r.t. Company being professionally managed company having no identifiable promoter whereas Company having Promoter i.e. Mr. Vijay Shekhar Sharma, in violation of Regulation 245(1) and (2) of ICDR Regulations, 2018.

Ashit Ranjit Lilani and Neeraj Arora paid Rs 53.62 lakh each; Ravi Chandra Adusumalli, Mark Schwartz, Pallavi Shardul Shroff, Douglas Feagin and Munish Varma paid Rs 42.9 lakh each and Amit Khera paid Rs 11.05 lakh.

(This copy will be updated.)