Sebi Issues Showcause Notice to Paytm KMP Over Rs 50,000 Loan Disclosure
Updated
Updated · The Economic Times · Aug 12
Sebi Issues Showcause Notice to Paytm KMP Over Rs 50,000 Loan Disclosure
3 articles · Updated · The Economic Times · Aug 12
Summary
An August 11 Sebi notice asked Paytm’s key managerial personnel to explain the timing of a December 6, 2023 disclosure about scaling back small loans below Rs 50,000, largely its buy-now-pay-later business.
That disclosure came after India’s central bank tightened rules on unsecured lending, putting the company’s handling of market-sensitive information under regulatory scrutiny.
Paytm said the executives are reviewing the notice and will reply within the required two-week window; it added that no penalty has been imposed and no wrongdoing has been established.
The company also said it expects no financial impact from the notice, which relates to an announcement that sent the stock down nearly 20% in a day and later to an eight-month low.