Vijay Shekhar Sharma, who is the founder of Paytm, is going through a difficult time at the moment. Paytm owner One 97 Communications Ltd has been accused of irregularities in its IPO. The group that ensures that companies follow the rules, called SEBI, has sent a notice to Vijay and other important people of his company about this problem.
What is the matter?
SEBI believes that Vijay Shekhar Sharma may not have told the truth when he was bringing his company’s shares to the public, which is called an IPO. The main question is whether he should be called the promoter of the company during this time or not. If he is seen as a promoter, then it can be said that he misused the IPO. SEBI believes that when the documents were submitted for the IPO, Vijay Shekhar was in charge of the company and not just an employee. Therefore, SEBI also sent a notice to the board members stating that he is just an employee.
Vijay Shekhar Sharma uneligible for SOPs
As per SEBI rules, Vijay Shekhar Sharma was not eligible for Employee Stock Options (ESOPs) after the listing of the company as the promoters of the company cannot take employee stock options after the IPO. According to the report, SEBI, One97 Communications and the directors who were present on the board at the time of bringing the IPO have not responded to the email.
How much impact on the stock?
Ever since Vijay Shekhar Sharma received the notice, Paytm shares have seen a sharp decline. There has been a sudden sharp decline in the trading session of Monday, August 26, 2024 and the stock has slipped by about 9 percent to Rs 505.55. However, it recovered later and finally closed with a decline of 4.48 percent at Rs 530.00. Paytm shares have given a return of about 24 percent in the last 6 months.
