Paytm CEO, CFO get SEBI notice over 2023 small-loan disclosure
The matter relates to Paytm’s December 6, 2023 announcement that it would reduce the distribution of personal loans below Rs 50,000, particularly its postpaid loans.
Paytm CEO Vijay Shekhar Sharma and CFO Madhur Deora are among the company’s senior executives who have received a show-cause notice from the Securities and Exchange Board of India (Sebi) over the timing of a December 2023 announcement on its small-ticket personal loan business.
The notice dated August 11, 2026, seeks an explanation on whether the information disclosed in the announcement should have been treated as unpublished price sensitive information (UPSI), per stock exchange filing by One 97 Communications, Paytm’s parent company. The executives have been given 14 days to respond.
The matter relates to Paytm’s December 6, 2023 announcement that it would reduce the distribution of personal loans below Rs 50,000, particularly its postpaid loans, following the Reserve Bank of India’s tightening of consumer lending norms.
Paytm had said the move was being undertaken in consultation with its lending partners and was aimed at maintaining a healthier loan portfolio.
The announcement had a sharp impact on Paytm’s shares, which fell about 20% in the following trading session.
Paytm said it does not expect the proceedings to have any financial impact on the company.