Vijay Shekhar Sharma Cancels 2.1 Crore ESOPs Amid SEBI Scrutiny

Paytm's founder and CEO, Vijay Shekhar Sharma, has voluntarily surrendered 2.1 crore unvested employee stock options (ESOPs) granted to him under the company’s 2019 scheme, following scrutiny from SEBI over regulatory violations in the issuance of these benefits. The company's Nomination and Remuneration Committee has cancelled and returned the ESOPs to the stock option pool. This decision will result in a one-time, non-cash ESOP expense of Rs 492 crore for the quarter ending March 2025, offset by lower ESOP expenses in subsequent years. The move comes as Paytm continues its efforts toward profitability and in response to concerns that Sharma, as a significant shareholder, was ineligible for such ESOP grants under Indian regulations. Paytm plans to provide a detailed ESOP cost schedule alongside its upcoming financial results.