Paytm Shares Drop After Report on Regulatory Scrutiny
- Securities regulator looking into Paytm’s IPO process: report
- Fintech pioneer already targeted by banking watchdog earlier
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Paytm shares fell Monday on news that India’s markets watchdog has sent its founder notices over alleged misrepresentation, a move the fintech pioneer said was not a “new development.”
The stock dropped as much as 8.9%, the most since February, after Moneycontrol reported that the Securities and Exchange Board of India issued a so-called show cause notice to founder Vijay Shekhar Sharma and some board members who served when the company was going public. The regulator was looking into whether Paytm classified Sharma as an employee rather than founder during the initial public offer 2 1/2 years ago, making him eligible for stock options, Moneycontrol said, citing people it didn’t identify.