The Securities and Exchange Board of India (SEBI) has issued a show-cause notice to key managerial personnel (KMPs) of One 97 Communications, the parent of Paytm, over the timing of a December 2023 disclosure and whether the information should have been classified as unpublished price-sensitive information (UPSI).
The KMPs would typically include the CEO, Vijay Shekhar Sharma; the CFO, Madhur Deora; and the whole-time directors of the company. The recipients have 14 days to respond. The notice, dated August 11, was received by the company’s officials on the same day, according to an exchange filing late Wednesday.
“The company’s key managerial personnel have received a show-cause notice dated August 11, 2026, from the Securities and Exchange Board of India regarding the timing of disclosure of certain information and its classification as unpublished price-sensitive information, concerning the company’s corporate announcement dated December 06, 2023,” the company said.
Paytm said it does not expect any financial impact from the notice. A show-cause notice seeks an explanation from the parties concerned and does not by itself establish a violation or impose a penalty.
The matter relates to Paytm’s December 6, 2023, announcement on its loan distribution business. The company had said it was recalibrating the distribution of personal loans of less than ₹50,000, with the postpaid loan product forming a smaller part of its business. The company had announced the expansion of its credit distribution business to focus on higher-ticket loans for consumers and merchants in partnership with banks and NBFCs in the December 2023 filing, after which the stock had fallen around 20 per cent. The move came three weeks after the Reserve Bank of India tightened its consumer lending norms.
