Paytm founder Vijay Shekhar Sharma voluntarily forgoes 21 million Esops

The company said the move will result in a "one-time, non-cash, acceleration of ESOP expense of Rs 492 crore in the fourth quarter of financial year 2025 (Q4FY25)

Fintech firm One97 Communications' Managing Director and Chief Executive Officer Vijay Shekhar Sharma has voluntarily surrendered 21 million shares worth about ₹1,800 crore, according to a regulatory filing and share closing price of the company.

 

It comes nearly nine months after the markets regulator the Securities and Exchange Board of India (Sebi) issued a show-cause notice to the company questioning the grant of these share-based employee benefits.

 

The company said it will result in a “one-time, non-cash, acceleration of Employees Stock Option Scheme (Esop) expense of ₹492 crore in Q4FY25, and an equivalent lowering of Esop expenses in future years”.

 

“The Nomination and Remuneration Committee of the board of the company has consequently treated the unvested Esops in question as cancelled and the same have been returned to the Esop pool under the One 97 Employees Stock Option Scheme, 2019,” the company said.

 

In August last year, Sebi issued a show-cause notice to the Noida-based company questioning Paytm’s move to grant 21 million Esops to Sharma in FY22.

 

Under the consent settlement route, an alleged wrongdoer can settle a pending violation with Sebi without denying or admitting guilt. Depending on the seriousness of the issue, Sebi may require the noticee to pay a fine or undergo a market ban, or both.

 

The Esop expenses are notional value recorded in books according to accounting rules.