SEBI issues show-cause notice to Paytm over timing of December 2023 disclosure

Mumbai: Paytm’s parent company, One 97 Communications Limited, has informed the stock exchanges that its key managerial personnel have received a show-cause notice from the Securities and Exchange Board of India (SEBI).The notice relates to the timing of a company disclosure made on December 6, 2023, and whether some information should have been treated as unpublished price-sensitive information.Notice DetailsAccording to the filing, SEBI issued the notice on August 11, 2026. The company disclosed the development to the BSE and National Stock Exchange on August 12.The notice has been issued under rules that allow SEBI to hold an inquiry and impose penalties. It examines whether the timing of the disclosure met the requirements under the listing rules.SEBI is also looking at how the information was classified under insider-trading rules. Unpublished price-sensitive information generally means important information that is not public and may affect a company’s share price when released.Response DuePaytm said the concerned key managerial personnel are studying the notice and will submit their response within the prescribed period.The filing said the reply must be sent within 14 days from August 11, the date on which the notice was received.No Penalty YetThe company clarified that no penalty, restriction or sanction has been imposed in the matter so far. It also said no financial impact on One 97 Communications is expected from the notice. Mumbai Sessions Court Refuses Anticipatory Bail To 5 Accused In ₹3.94 Crore SEBI Computer Parts Theft CaseA show-cause notice gives the recipients an opportunity to explain their position before the regulator decides whether further action is required. Therefore, the notice itself does not mean that a violation has been established.Company DisclosureOne 97 Communications made the announcement under Regulation 30 of SEBI’s listing rules, which requires listed companies to disclose certain important events to stock exchanges.Company Secretary and Compliance Officer Sunil Kumar Bansal signed the filing. Paytm said the same disclosure would also be placed on its investor-relations website for public access.Disclaimer: This article is based on a company filing and is for information only; investors should consult advisers before making decisions.

The management of One 97 Communications, the parent company of Paytm, have received a show-cause notice from the Securities and Exchange Board of India (Sebi) concerning the timing of disclosure of certain information and its classification as unpublished price-sensitive information.In a regulatory filing, the company said the market regulator’s notice was dated August 11, 2026 and relates to the company's corporate announcement dated December 6, 2023.Paytm said the key managerial personnel are evaluating the show-cause notice and will respond within the prescribed timeline. The response to the notice has to be submitted within 14 days from the date of receipt, which was August 11, 2026.Read more: Paytm shares recover 410% from 2024 low, but will long-awaiting IPO investors finally see redemption?The notice relates specifically to the timing of disclosure of certain information and its classification as unpublished price-sensitive information in connection with the December 6, 2023 corporate announcement. The company did not provide further details on the nature of the information in the announcement.Paytm said no financial impact on the company is expected from the show-cause notice.Paytm Q1 results snapshotThe fintech company reported a strong performance for the quarter ended June 2026, with consolidated net profit rising 79% year-on-year to Rs 220 crore from Rs 123 crore in the corresponding quarter last year.Read more: Paytm remains majority Indian-owned for 2nd consecutive quarterRevenue from operations rose 28% year on year to Rs 2,448 crore from Rs 1,918 crore. On a sequential basis, revenue increased 8% from Rs 2,264 crore in the March quarter. Total income for the quarter stood at Rs 2,630 crore, up 22% from Rs 2,159 crore a year ago and higher than Rs 2,442 crore in the previous quarter.Earlier this week, Bernstein raised its target price on the stock to Rs 2,200 from Rs 1,500, while retaining its Outperform rating. The revised target is the highest on the Street and marks the first time Paytm has received a target price above its IPO price.Paytm made its stock market debut in July 2021 at an issue price of Rs 2,150, a level the stock has not returned to since its listing. Bernstein said it has incorporated the introduction of merchant discount rate (MDR) on UPI transactions into its base case from FY28 onwards.The target price hike comes as Bernstein incorporates the introduction of MDR on UPI transactions into its base case from FY28E onwards. The brokerage expects MDR to improve Paytm's net payments margin by around 3-4 basis points, resulting in an estimated 30% increase in FY30E EPS compared with its previous forecasts.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)