Business: The troubles of Vijay Shekhar Sharma, the founder of Paytm, which provides online payment service, are not decreasing. Now he has been accused of irregularities in the IPO of One 97 Communications Ltd, which owns Paytm. According to media reports, in this case, market regulator SEBI has sent a notice to Vijay Shekhar Sharma and the members of the board of One 97 Communications Ltd during the launch of the IPO.

What is the whole matter?

Actually, SEBI suspects that Vijay Shekhar Sharma misrepresented some facts while bringing the IPO. In simple words, the whole matter is whether Vijay Shekhar Sharma should be considered the promoter of the company during the IPO or not. If he is considered the promoter, then he will be accused of taking advantage of the IPO in an unfair manner.

In SEBI's opinion, when the documents related to One 97 Communications' IPO were submitted, Vijay Shekhar had the management control of the company at that time. He was not an employee. This is the reason why SEBI has also issued a show cause notice to those board members who accepted the fact that Vijay Shekhar Sharma was an employee.

Why the ruckus between promoter and employee?

If Vijay Shekhar Sharma was declared a promoter at the time of launching the IPO, he would have been ineligible for ESOP (Employee stock option plan). According to SEBI rules, promoters do not get ESOPs after the IPO. SEBI has already taken action against the directors of the company. But, then the matter was related to financial fraud.What was the impact on the shares?

Paytm's stock was recovering for the last few days. But, after Vijay Shekhar Sharma received the notice, it saw a sharp decline. At one point during trading, Paytm's stock fell by about 9 percent. However, it recovered later and finally closed at Rs 530.00 with a decline of 4.48 percent. In the last 6 months, Paytm's stock has given a return of about 24 percent.