Market regulator Sebi issues show-cause notice to Paytm on ESOPs

Capital markets regulator Securities and Exchange Board of India (Sebi) has issued a show-cause notice to Paytm, questioning the fintech major’s move to grant 21 million Employee Stock Options (ESOPs) to its founder and CEO Vijay Shekhar Sharma in financial year 2021-22 (FY22).

Paytm, in an exchange filing on Friday, said, “During the previous quarter, the company had received a show cause notice from Sebi related to the above options regarding compliance with SEBI SBEB Regulations. The company has submitted its preliminary response and is in the process of seeking further information from SEBI in this regard.”