Former Paytm Officials Settle with SEBI: A Regulatory Hurdle Cleared

Eight current and former officials of Paytm owner One97 Communications paid Rs 3.32 crore to SEBI to resolve claims of securities market norm violations. The case involved allegations of incorrect statements in offer documents and breaches of Listing Obligations and Disclosure Requirements Regulations and Issue of Capital and Disclosure Requirements Regulations.

Eight officials associated with One97 Communications, the entity behind Paytm, have collectively paid Rs 3.32 crore to the Securities and Exchange Board of India (SEBI) to settle claims of breaching securities market norms.

The settlement involves key figures like former compliance officer Amit Khera, and independent directors Ashit Ranjit Lilani, Neeraj Arora, Mark Schwartz, and Pallavi Shardul Shroff, as well as non-executive directors Douglas Feagin, Munish Varma, and Ravi Chandra Adusumalli. This development follows a SEBI show cause notice issued on May 17.

The allegations centered on violations of the Listing Obligations and Disclosure Requirements (LODR) Regulations and Issue of Capital and Disclosure Requirements (ICDR) norms, notably involving alleged biases in decision-making related to benefits to MD and CEO Vijay Shekhar Sharma and his relatives. Following the settlement, adjudication proceedings against these individuals have been closed.

(With inputs from agencies.)