Paytm Gets a Price Cut—SEBI Slashes Fine to ₹6 Million in IPO Disclosure Case

Image Source: The Economic Times

One97 Communications Ltd, parent company of online payments company Paytm, has been given a partial reprieve by India's market regulator, the Securities and Exchange Board of India (SEBI), as its penalty is reduced to ₹6 million in a highly publicized case of alleged IPO process violations in its 2021 IPO process.

The case had arisen on the basis of allegations of:

Non-compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR)
Improper disclosures in the IPO offer documents
Misrepresentation of promoter identity, with Paytm initially claiming to be a professionally managed company despite identifying Vijay Shekhar Sharma as its promoter

SEBI’s internal committee reviewed settlement proposals from several top executives, including former directors and compliance officers. The regulator accepted monetary settlements without admission of guilt, citing cooperation and corrective actions taken by the company.

This is part of a larger settlement wherein eight Paytm executives collectively shelled out ₹33.2 million to settle related charges. One97 Communications' smaller fine represents a partial resolution to a regulatory saga that has hung over the fintech giant since its IPO.

Relevant Sources: SEBI, Mint, Economic Times