Former directors of Paytm settle matter with Sebi for Rs 3.32 crore

Matter pertains to benefits paid to Vijay Shekhar Sharma and lapse in identifying promoter

Seven former directors and the former compliance officer of One97 Communications -- the parent firm of Paytm -- have paid Rs 3.32 crore to the Securities and Exchange Board of India (Sebi) as part of a settlement in the alleged violation of regulatory norms.

 

These former directors -- all part of the then Nomination and Remuneration Committee (NRC) -- were accused of violating rules while deciding benefits given to the company’s managing director and chief executive officer Vijay Shekhar Sharma and his relatives.

 

The matter has been disposed of following the settlement.

 

The eight individuals -- four independent directors, three non-executive independent directors and the compliance officer -- had filed for settlement without admitting or denying the findings of fact and conclusions of law.

 

In a show-cause notice issued in May 2024, the market regulator had alleged that the NRC had failed to discharge duties with an unbiased and independent approach.

 

The then directors were accused of approving and signing offer documents containing incorrect statements and incomplete disclosures.

 

The market regulator had also found that these directors who were part of the board of directors at the time of filing of prospectus authorised the documents stating that the company was professionally managed and there were no identifiable promoters while Sharma was the promoter.

 

Sebi’s high-powered advisory committee had recommended the settlement amount and it was approved by the panel of whole-time members.

 

As per the disclosures by the company, One97 Communications is a 100 per cent public owned company. The shares of the company ended flat on Friday.