• Source:JND
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The market regulator Sebi has issued a notice to the fintech firm One97 Communications, which owns the Paytm brand, regarding the employee stock options granted to its MD and CEO Vijay Shekhar Sharma in March 2024, the company said in a filing on Monday.

In response to queries from the stock exchange, Paytm said the notification was not a new development, and it was in regulatory contact with the market regulator to make necessary representations.

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According to Paytm's annual results filing for FY2024, it had granted 21 million employee stock options (ESOPs) to Sharma in FY2024. SEBI had issued a show-cause notice to Paytm on the ESOPs issued to Sharma.

"This is not a new development, as the Company had already made relevant disclosures on this matter in its financial results for the quarter and year ended March 31, 2024, as well as the quarter ended June 30, 2024. The Company is in regular communication with the Securities Exchange Board of India (SEBI)

"To make necessary representations regarding this matter," Paytm said in response to a stock exchange query.

Paytm has filed a preliminary response and is seeking further information from the regulator in this regard, it said in its disclosures dated May 22 and July 19.

"Based on an independent legal opinion obtained by the management, it believes that the Company complies with the relevant regulations. Accordingly, there is no impact on the financial results for the year ended March 31, 2024," the filing said. 

Paytm Stock 

The stock tumbled 4.41 percent to Rs 530.05 each on the BSE. 505.25, down 8.88 percent for the day. The NSE fell 4.47 percent to Rs 530. The stock fell 8.88 percent to Rs 505.55 during the day. The company's market value decreased by Rs 1,534.23 crore to Rs 33,731.56 crore.

(With PTI's Input)

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