Former Paytm official, directors pay Rs 3.32 crore to settle case with Sebi

18 Jan 2025, 05:04 PM

According to Sebi, directors failed to discharge duties with unbiased approach while decision-making with respect to matters involving benefits to Paytm CEO Vijay Shekhar Sharma.

Arti Singh

Seven former directors and the former compliance officer of One97 Communications, the parent firm of Paytm, have settled a case by paying Rs 3.32 crore to the Securities and Exchange Board of India (Sebi). The settlement pertains to regulatory violations.

Amit Khera, former compliance officer and company secretary; former independent directors Ashit Ranjit Lilani, Neeraj Arora, Mark Schwartz and Pallavi Shardul Shroff; former non-executive nominee directors Douglas Feagin, Munish Varma, and Ravi Chandra Adusumalli were accused of violating Sebi's listing norms, issue of capital and disclosure requirements norms.

Lilani and Arora settled the matter by paying Rs 53.63 lakh each; Adusumalli, Schwartz, Shroff, Feagin, and Varma each paid Rs 42.90 lakh. And, the former compliance officer Khera paid Rs 11.05 lakh.

According to Sebi, independent directors Lilani and Arora -- part of the then Nomination and Remuneration Committee (NRC) -- failed to discharge duties with unbiased and independent approach while decision-making with respect to matters involving benefits to Paytm CEO Vijay Shekhar Sharma and his relatives, in violation of Sebi regulation. 

The directors, the regulator said, also approved and singed offer documents containing incorrect statements and incomplete disclosures.

The compliance officer allegedly failed to ensure regulatory conformity for the listed entity. 

"In view of the receipt of settlement amount by SEBI,  the instant adjudication proceedings initiated against the former official and directors are hereby disposed," Sebi said in its notification.

The markets regulator had issued a show-cause notice in this regard on May 17 last year. 

The author is Founder and Editor of The Head and Tale. She can be reached at [email protected]
Tweets @artijourno

Who Reads Us

I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest,  and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.

Rahul Chari, Co-Founder and CTO, PhonePe
Rahul Chari Co-Founder And CTO, PhonePe

Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.

Rishi Gupta, MD & CEO, Fino Payments Bank
Rishi Gupta MD & CEO, Fino Payments Bank

The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.

Lizzie Chapman, co-founder, ZestMoney
Lizzie Chapman Co-founder, ZestMoney

What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.

Mohit Bedi, co-founder, Kiwi
Mohit Bedi Co-founder, Kiwi

I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.

Cofounder of IPO-bound leading fintech lending company
Cofounder of IPO-bound leading fintech lending company