Paytm Top Management Gets SEBI Notice Over 2023 Loan Disclosure Timing

Digital payments company Paytm said late on Wednesday that its key management personnel, including CEO Vijay Shekhar Sharma and CFO Madhbur Deora, received a show cause notice from the Securities and Exchange Board of India (SEBI) over the timing of its December 2023 announcement curbing small personal loans.

The notice was issued on Tuesday, and the company's management has 14 days to respond.

Paytm shares were trading at ₹1604.40, down 0.35%, at 10:27 am on 13 August 2026.

Background To The SEBI Notice

The matter relates to a statement issued by Paytm on 6 December 2023, in which the company said it would reduce the issuance of personal loans below ₹50,000, following the Reserve Bank of India's (RBI) decision to tighten rules around consumer lending.

The RBI's order, issued around three weeks prior to Paytm's announcement, had introduced higher capital requirements for personal loans amid concerns over a sharp rise in small-value lending.

The Paytm share price fell around 1.9% soon after the RBI order but recovered over the next few days. However, in the eight days before the company’s announcement on 6 December, the stock had already declined by around 12%. It then fell another 20% in the following trading session.

Company's Response

Paytm said on Wednesday that it does not expect any financial impact arising from the show cause notice. A show cause notice from SEBI is typically issued to seek formal responses from individuals or entities under investigation.

If the allegations are upheld, those involved could face monetary penalties or other restrictions under Indian securities regulations.

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