Paytm seeks Sebi settlement over potential ESOP issuance norms violation

Digital payments major One97 Communications (Paytm) has filed a settlement application with the Securities and Exchange Board of India (Sebi) for potential violation of norms around issuance of employee stock option (ESOP), said people in the know.

The move follows a show cause notice (SCN) issued by the market watchdog earlier this year.

“The company has received a SCN from Sebi related to the 21 million ESOP granted to the Managing Director and CEO of the Company (which is subject to achievement of specified milestones) regarding compliance with SEBI SBEB (Share Based Employee Benefits and Sweat Equity)