- One97 Communications received a SEBI show cause notice over a 2023 announcement timing
- Notice concerns Paytm's December 6, 2023 disclosure on small loans under Rs 50,000
- Paytm shares fell nearly 20% after the announcement following RBI's unsecured lending rules
Paytm-parent One 97 Communications has received a show cause notice from the Securities and Exchange Board of India for the 'timing' of one of its announcements from 2023.
The notice was issued to the key managerial personnel of the company asking them to how the company handled a major announcement back in December 2023, according to a regulatory filing on BSE.
The market regulator has sought an explanation for the timing of disclosure the company made on December 6, 2023, when it revealed plans to pull back on small loans under Rs 50,000 - mostly comprising its "buy now, pay later" offering.
The announcement had come shortly after India's central bank tightened rules on unsecured lending and led to a steep fall in paytm shares.
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The stock dived nearly 20% in a single day and eventually fell to an eight-month low. In the filing Paytm has said that noticees are evaluating the SCN and will respond to the same within the prescribed two week timeline.
Further the company said that no penalty has been imposed and no wrongdoing has been proven — this is simply the early stage where regulators ask for an explanation.
Paytm Share Price
Paytm's stock traded 0.4% higher at Rs 1,616.8 apiece on the NSE as of 12:05 p.m., the shares have risen as high as 0.55% during the day.
The scrip is up 24.6% year-to-date and 40% in the last 12 months.
Paytm Q1FY27 Highlights
- Revenue up 8.1% to Rs 2,448.00 crore versus Rs 2,264.00 crore.
- Net Profit up 20% to Rs 220.00 crore versus Rs 184.00 crore.
- Ebitda up 54% to Rs 203.00 crore versus Rs 132.00 crore.
- Margin at 8.3% versus 5.8%.
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