Paytm senior executives get Sebi notice for 'timing' of 2023 regulatory disclosure

Paytm parent One 97 Communications told stock exchanges late on Wednesday that the Securities and Exchange Board of India has issued a showcause notice to its key managerial personnel.

The Noida-headquartered company said Sebi's notice questions how the company handled a major announcement back in December 2023.

The Sebi notice, dated August 11, has asked the executives to explain the timing of a disclosure the company made on December 6, 2023, when it revealed plans to pull back on small loans under Rs 50,000 - mostly comprising its "buy now, pay later" offering. The move had come shortly after India's central bank tightened rules on unsecured lending.


That announcement in 2023 was succeeded by Paytm's stock plunging nearly 20% in a single day and eventually fell to an eight-month low.

Paytm says its executives are reviewing the notice and will respond within the required two-week window. The company said that no penalty has been imposed and no wrongdoing has been proven — this is simply the early stage where regulators ask for an explanation.

Paytm also said it doesn't expect the matter to have any financial impact on the business itself.