Softbank’s Munish resigns from Patym and PB Fintech boards
Munish Varma, the managing partner at SoftBank Investment Advisors, has resigned from the board of Paytm, BSE’s major payments arm announced Tuesday night. Varma is also expected to step down from the board of directors of Policybazaar, who briefed them on the matter. It comes after the two companies listed on the Indian stock exchange last November.
On Tuesday evening, it was informed by BSE that Varma along with the replacement of direct Vikas Agnihotri has stepped down from the board.
Sources with knowledge of the development of the Business says it is in line with SoftBank’s policy to give resignation from the boards of parent Organization once they go public.
It was reported Munish’s withdrawal from the boards of Paytm, and Policybazaar on Tuesday morning. Policybazaar has yet to notify the exchange of this.
The departure of Munish Varma from Paytm comes as the company faces governmental suppression, with the Reserve Bank of India (RBI) barring the company from adding new customers to its payments bank last week prior. The shares of Paytm’s parent company, One97 Communications, fell another 12% in Tuesday trading to close at Rs 592.40 per share. The stock lost almost a quarter of its value in two days. Paytm shares have fallen more than 70% from their issue price of Rs 2,150. Meanwhile, parent company Policybazaar’s PB Fintech issue price was Rs 980 last November. Following Tuesday’s trading on the BSE, the company’s shares closed at Rs 689.20 per unit, a slight drop from Monday.
The central bank would decide the terms of reference for an independent technical audit of the Paytm Payments, Bank which was announced on the 14th of March, after barring the bank from accepting new customers. Citing to a source, it was reported that the RBI had sanctioned the Paytm Payments, Bank for allegedly leaking data to entities in China on March 14 by Bloomberg. The founder of Paytm Vijay, Shekhar Sharma, had denied the allegations put on him.
Vijay Sharma was involved in a car crash in Delhi in February in which he was allegedly arrested and released on bail. The company had declared the matter as minor and according to the reports. The media had exaggerated the arrest of the Paytm founder.
Since its debut on the stock market, Paytm has struggled to convince analysts and investors of its ability to generate more earnings and continue to grow, prompting brokerage firms to put clear warnings about their stock prices. The company had managed very quickly to address concerns of RBI and starting to add new customers will be beneficial.
The Reserve Bank of India has clearly defined a timetable and has laid out its expectation for the Company, Vijay Sharma has said in an interview on the 14th of March. We are determined to complete the IT audit within the timeline and submit it on time. The timeline given to them was not specified by him.
51% of the holding of the Paytm Payment, Bank is with Sharma, and the rest 49% remains with One97 communications. It is also said by him, in an interview that the RBI’s comments did not include concerns about the clearing bank’s ownership structure.