Paytm top officials pay Rs 3.32 crore to settle SEBI norms violations

One97 Communications senior executives the company follows Timberhave filed fines with the Securities and Exchange Board of India (Sebi) to settle allegations of regulatory violations The allegations relate to favoring Paytm CEO Vijay Shekhar Sharma and members of his family, and approving and signing public offer documents that contained inaccurate information and incomplete disclosures about the promoting organization.

The settlement order was issued by Sebi on January 17. The settlement amount recommended by SEBI’s advisory committee was subsequently approved by the entire task force.

Former compliance officer Amit Khera and several former board members, including independent directors Ashit Ranjit Leelani, Neeraj Arora, Mark Schwartz and Pallavi Shardul Shroff, as well as former directors Douglas Fagin, Munish Varma and Ravi Chandra Adusumalli, have taken over the issues. . The regulator for violations of listing regulations and market public issue regulations by paying over Rs 3.32 crore.

The regulator’s six-page order said Khera failed to ensure compliance with regulatory provisions applicable to the said entity under the LODR Regulations, 2015. Also, independent directors Leelani and Arora, who are part of the NRC, failed to comply Responsibilities: Impartial and independent in making decisions related to the company’s medicine and CEO Vijay Shekhar Sharma; to his relatives as specified in the order.

The market regulator issued a show cause notice in May 2024 accusing the NRC of dereliction of duty in an impartial and independent manner. Furthermore, former board members were alleged to have approved and executed offer documents containing inaccurate statements and inadequate disclosures.

The offer documents were approved and signed by the directors despite containing misrepresentations and incomplete disclosures as observed.Subsequently, their applications were submitted to the internal committee of Sebi during its meeting on August 27, 2024.