SEBI Show-Cause Notice Triggers 8% Drop in Paytm Shares; Founder Vijay Shekhar Sharma Under Scrutiny

Paytm’s parent company, One97 Communications, saw its shares drop sharply by 8% on Monday, closing at ₹512.25 on the NSE, following a report from Moneycontrol that revealed new regulatory hurdles. The Securities and Exchange Board of India (SEBI) has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and several board members linked to alleged misrepresentation during the company’s IPO in November 2021. This regulatory scrutiny, based on information from the Reserve Bank of India (RBI), follows previous restrictions placed on Paytm Payments Bank. While Paytm’s stock had shown some positive trends recently, including a 4.17% rise in the last month and a 30.04% increase over six months, it still faces significant challenges. Year-to-date, the stock has declined by 17.96%, and it remains down by 41.37% over the past year, far below its IPO price of ₹2,150.

Reference: Financial Express

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