Fresh Trouble For Paytm As SEBI Issues Show Cause Notices Alleging Fact Misrepresentation During IPO

- SEBI has issued show-cause notices to Paytm founder Vijay Shekhar Sharma and board members over alleged fact misrepresentation during the IPO. - The probe, initiated by inputs from RBI, questions Sharma's compliance with promoter classification norms. - Paytm clarified that this is not a new development and has been disclosed in financial results for March and June 2024 quarters. - SEBI's notices relate to Sharma's eligibility for ESOPs post-IPO, with allegations he should have been classified as a promoter. - The fintech major has faced regulatory challenges, including a recent fine of INR 47.12 Lakh for unpaid stamp duties. Source: [Inc42](https://inc42.com/buzz/fresh-trouble-for-paytm-as-sebi-issues-show-cause-notices-alleging-fact-misrepresentation-during-ipo/)