<p>Paytm said on Wednesday founder and CEO Vijay Shekhar Sharma has foregone 21 million employee stock options granted to him, months after the country's markets regulator issued show-cause notices over violation of rules on grant of share-based employee benefits.</p><p>Last August, the Securities and Exchange Board of India (SEBI) determined that the grant of 21 million employee stock options (ESOPs) to Sharma violated its rules governing share-based employee benefits.</p><p>As per Indian rules, large shareholders with ability to influence company decisions cannot hold ESOPs.</p>.Paytm shares pare early losses, ends nearly 2% higher.<p>Sharma owned a 14.7% stake in Paytm a year before the company's 2021 public filing. To become eligible for ESOP grants, he reduced his shareholding to 9.1% by transferring 30.97 million shares to Axis Trustee Services, which acted on behalf of the Sharma family trust.</p><p>SEBI had issued these notices to Sharma and other board members who held roles during Paytm's November 2021 IPO over alleged misrepresentation of facts.</p>
<p>Paytm said on Wednesday founder and CEO Vijay Shekhar Sharma has foregone 21 million employee stock options granted to him, months after the country's markets regulator issued show-cause notices over violation of rules on grant of share-based employee benefits.</p><p>Last August, the Securities and Exchange Board of India (SEBI) determined that the grant of 21 million employee stock options (ESOPs) to Sharma violated its rules governing share-based employee benefits.</p><p>As per Indian rules, large shareholders with ability to influence company decisions cannot hold ESOPs.</p>.Paytm shares pare early losses, ends nearly 2% higher.<p>Sharma owned a 14.7% stake in Paytm a year before the company's 2021 public filing. To become eligible for ESOP grants, he reduced his shareholding to 9.1% by transferring 30.97 million shares to Axis Trustee Services, which acted on behalf of the Sharma family trust.</p><p>SEBI had issued these notices to Sharma and other board members who held roles during Paytm's November 2021 IPO over alleged misrepresentation of facts.</p>