Paytm Faces Regulatory Heat: Shares Drop Amid Sebi Notice

Shares of One97 Communications Ltd, owning the Paytm brand, dropped over 4% after Sebi issued show-cause notices to Vijay Shekhar Sharma and board members for alleged IPO misrepresentation. The company's market valuation saw a substantial decline. Paytm clarified that these notices were previously disclosed and are in active dialogue with the regulators.

Shares of One97 Communications Ltd, the parent company of Paytm, fell by over 4 per cent on Monday following reports of Sebi issuing show-cause notices to founder Vijay Shekhar Sharma and board members over alleged misrepresentation during its IPO in November 2021.

The stock dropped 4.41 per cent, settling at Rs 530.05 on the BSE, after plunging 8.88 per cent to Rs 505.25 during the day. Similarly, on the NSE, Paytm shares tumbled 4.47 per cent to Rs 530, following an intraday drop to Rs 505.55.

This decline also led to a significant reduction in the company's market valuation, which fell by Rs 1,534.23 crore to Rs 33,731.56 crore. Paytm responded to the notice by asserting that it is in regular communication with Sebi and has disclosed all relevant information in its financial results.

(With inputs from agencies.)