The Securities and Exchange Board of India (SEBI) on Friday allowed eight former board members of Paytm’s parent company One97 Communications to settle for non-disclosure of material information for Rs 3.3 crore. Out of the eight board members, there were seven former directors and the former compliance officer. They had filed for settlement without admitting or denying the findings of fact and conclusions of law
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All these members were part of the Nomination and Remuneration Committee (NRC) that decided on benefits given to the company’s managing director and chief executive officer Vijay Shekhar Sharma and his relatives. The matter has been disposed of following the settlement.
In May 2024, the market regulator had issued a show-cause notice alleging that the NRC had failed to discharge duties with an unbiased and independent approach. It had also accused these former board members of approving and signing offer documents containing incorrect statements and incomplete disclosures.
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The market regulator had also found that these directors, who were part of the board of directors at the time of filing of the prospectus, authorised the documents stating that the company was professionally managed and there were no identifiable promoters when Sharma was the promoter.
SEBI’s advisory committee recommended the settlement amount and it was approved by the panel of whole-time members.
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