Paytm's CEO and ESOP Settlement: Behind the Scenes
One97 Communications Ltd, known for the Paytm brand, and its CEO Vijay Shekhar Sharma settled a case with SEBI over Employee Stock Options (ESOPs) irregularities. The settlement included financial penalties and the cancellation of Vijay's and his brother Ajay's ESOPs. The case highlights regulatory issues around ESOP allocations and corporate governance.
- Country:
- India
One97 Communications Ltd, the entity behind the widely-used Paytm brand, faced regulatory scrutiny as its CEO Vijay Shekhar Sharma and his brother Ajay Shekhar Sharma entered a settlement agreement with SEBI concerning Employee Stock Options (ESOPs).
The market regulator imposed financial penalties totaling Rs 2.8 crore and called for the cancellation of Vijay's and Ajay's ESOPs. As part of the settlement, Vijay agreed to abstain from accepting fresh ESOPs from any listed company for three years.
The case, which questioned the eligibility and disclosure practices concerning Vijay's ESOPs, underscores critical governance issues and reflects on the company's adherence to fair practices in the allocation of equity stakes.
(With inputs from agencies.)
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