Paytm CEO Vijay Sharma makes big move, gives up shares worth Rs 1800 crore due to…

Fintech firm One97 Communications' Managing Director and Chief Executive Officer Vijay Shekhar Sharma has voluntarily surrendered 2.1 crore shares.

Written by: Abhijeet Sen Edited by: Abhijeet Sen

Updated: April 16, 2025, 11:10 PM IST

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https://www.india.com/business/paytm-ceo-vijay-sharma-makes-big-move-gives-up-shares-worth-rs-1800-crore-due-to-ed-notice-7760599/ Copy

Vijay Shekhar Sharma surrenders shares: In a significant financial development, Fintech firm One97 Communications’ Managing Director and Chief Executive Officer Vijay Shekhar Sharma has voluntarily surrendered 2.1 crore shares. Surrendering the shares worth about Rs 1,800 crore, the Chief Executive Officer has fulfilled the requirement after Enforcement Directorate (ED) issued a show-cause notice to One97 Communications Ltd, the parent company of Paytm, its Managing Director Vijay Shekhar Sharma and others for violating certain provisions of the Foreign Exchange Management Act, 1999

Vijay Shekhar Sharma surrenders shares

The shares were granted to Sharma as part of ESOP (employee stock ownership plan) at the time of listing of One97 Communications, which owns Paytm brand. It will now return to the ESOP pool under One 97 Employees’ Stock Option Scheme, 2019.

“Vijay Shekhar Sharma, Chairman, Managing Director and Chief Executive Officer of the Company vide letter dated April 16, 2025 has informed the company that he has voluntarily forgone all 2,10,00,000 (Two Crore Ten Lakhs) ESOPs granted to him under One 97 Employees Stock Option Scheme, 2019, with immediate effect,” the filing said.

“This will result in a one-time, non-cash, acceleration of ESOP expense of Rs 492 crores in the fourth quarter of financial year 2025, and an equivalent lowering of ESOP expenses in future years,” the filing added.

The investigation conducted by ED revealed that Paytm’s flagship company “had made foreign investment in Singapore and did not file necessary reporting to RBI for creation of overseas step-down subsidiary”.

Response from Paytm

Earlier, Paytm had said it would seek resolution of alleged FEMA contraventions related to two acquired subsidiaries — Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL).

The company said in a stock exchange filing that certain alleged contraventions are attributable to these subsidiaries for transactions during a period before they became part of Paytm. Paytm said that it was seeking legal advice and evaluating appropriate remedies through available regulatory processes.

(With inputs from agencies)