Digital payments firm Paytm's top management got a notice from SEBI over the timing of its 2023 announcement curbing small personal loans following a central
bank clampdown. Paytm's key management personnel, which includes CEO Vijay Shekhar Sharma and CFO Madhur Deora, received the show cause notice from the Securities and Exchange Board of India. In a statement to the stock exchanges, One 97 Communications or Paytm stated, "pursuant to Regulation 30 of the SEBI Listing Regulations, we wish to inform you that the company’s key managerial personnel (hereinafter referred to as “Noticees”) have received a Show Cause Notice dated August 11, 2026 (“SCN”) from the Securities and Exchange Board of India (“SEBI”) regarding the timing of disclosure of certain information and its classification as unpublished price sensitive information, concerning the company’s corporate announcement dated December 06, 2023." On December 6, 2023, Paytm had announced it would scale back small-ticket personal loans under Rs 50,000 following stricter consumer lending and capital requirement rules enacted by the Reserve Bank of India. SEBI’s notice to Paytm’s key management centres on whether the company disclosed information about curbing small-ticket personal loans at the appropriate time and whether the information should have been classified as unpublished price sensitive information (UPSI). The regulator is examining the timing of Paytm’s December 6, 2023 announcement, which came after the RBI tightened rules around consumer lending and capital requirements.
