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New Delhi: <\/strong>SEBI, the market regulator of India, has served show-cause notices to Paytm\u2019s founder Vijay Shekhar Sharma and other board members who were in office during the company\u2019s IPO in November 2021.<\/p>\n A Reuters article citing Moneycontrol states that the notices accuse the recipients of misrepresenting facts and violating shareholder classification norms.<\/p>\n Following this report, Paytm\u2019s stock value dropped by as much as 8.9%, with neither Paytm nor SEBI responding to Reuters\u2019 request for comments.<\/p>\n The controversy hinges on whether Sharma was to be considered a major shareholder rather than an employee in Paytm\u2019s IPO documentation. SEBI has challenged the directors from that period for endorsing Sharma\u2019s assertion of not being a major shareholder.<\/p>\n SEBI is contemplating rule revisions to tackle issues concerning founders and relatives in tech or app-based startups acquiring shares via the employee stock ownership plan (ESOP).<\/p>\n Sharma\u2019s purported non-adherence enabled him to acquire shares through ESOPs, a practice SEBI disapproves of for founders who possess rights akin to those of significant shareholders, also known as promoters.<\/p>\n In the year leading up to the 2021 public offering, Sharma held a 14.7% stake, which he reduced to 9.1% by transferring 30.97 million shares to Axis Trustee Services on behalf of the Sharma family trust. This transfer qualified him for ESOP shares, as holding over a 10% stake in a publicly listed company disqualifies a shareholder from receiving stock options.<\/p>\n<\/div>\n [ad_2] [ad_1] New Delhi: SEBI, the market regulator of India, has served show-cause notices to Paytm\u2019s founder Vijay Shekhar Sharma and other board members who were in office during the company\u2019s IPO in November 2021. A Reuters article citing Moneycontrol states that the notices accuse the recipients of misrepresenting facts and violating shareholder classification norms. Following […]<\/p>\n","protected":false},"author":1,"featured_media":42555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-42554","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"jetpack_featured_media_url":"https:\/\/thenftimes.com\/wp-content\/uploads\/2024\/08\/download-178.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/42554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/comments?post=42554"}],"version-history":[{"count":1,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/42554\/revisions"}],"predecessor-version":[{"id":42556,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/42554\/revisions\/42556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/media\/42555"}],"wp:attachment":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/media?parent=42554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/categories?post=42554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/tags?post=42554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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