The Securities and Exchange Board of India (SEBI) has issued a show-cause notice to key managerial personnel (KMPs) of One 97 Communications, which operates Paytm, over the timing of disclosure and classification of information related to a December 6, 2023 corporate announcement.
The company said the KMPs received the show-cause notice dated August 11, 2026, from the capital markets regulator. The notice concerns the timing of disclosure of certain information and whether it should have been classified as unpublished price sensitive information (UPSI).
According to the company’s regulatory filing, the proceedings relate to the December 6, 2023 corporate announcement. Paytm said its KMPs are evaluating the notice and will respond within the prescribed timeline.
The December 6, 2023 announcement concerned Paytm’s decision to expand its credit distribution business towards higher-ticket personal and merchant loans, while reducing the distribution of loans below ₹50,000 in consultation with its lending partners.
The announcement said the company would focus on higher-ticket loans targeted at lower-risk and creditworthy customers in partnership with banks and non-banking financial companies (NBFCs). It also said loans below ₹50,000, prominently comprising its postpaid product, would become a smaller part of its loan distribution business.
SEBI’s notice has been issued under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995. The regulator is examining the timing of disclosure under Regulation 30(6)(iii) read with Regulation 30(4)(i)(c) of the SEBI Listing Regulations, as well as the classification of the information as UPSI under Regulations 9A(1) and 9A(2)(b) read with Regulation 2(1)(n) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Paytm said the response to the show-cause notice has to be submitted within 14 days from August 11, 2026. The company also said no financial impact is expected and that no penalty, restriction or sanction has been imposed pursuant to the communication.
