Surprise corporate actions by Indian tech darlings spur scrutiny

While within the rules, experts not convinced by buyback move of fintech firms

The relentless rout in shares of home grown technology start-ups since their much-hyped initial public offerings (IPO) last year has driven some of them to use surprise tactics to arrest the slide, drawing scrutiny from investors and market experts.
 

First it was FSN E-Commerce Ventures, the owner of beauty e-retailer Nykaa, which announced a bonus share issue to coincide with the expiry of an IPO lock-up on key investors in November that risked extending the stock’s slump. Then this month, Paytm somewhat baffled investors with a decision to buy back shares a little over a year since its listing.
 

While