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.