Vijay Shekhar Sharma stepped down as non-executive chairman
Paytm mentioned on Monday that Vijay Shekhar Sharma would step down as non-executive chairman and board member of its funds financial institution’s unit, because the embattled digital funds firm overhauls its board after a central financial institution clampdown.
The motion in opposition to Paytm Funds Financial institution adopted ”severe supervisory issues”, together with insufficient buyer establish and a scarcity of arms-length distance with Paytm, sources had advised Reuters.
The Reserve Financial institution of India has requested the banking unit to wind down its operations by March 15 because of persistent non-compliance and continued materials supervisory issues, triggering a meltdown in Paytm’s inventory.
Srinivasan Sridhar, former chairman of state-owned Central Financial institution of India, former Financial institution of Baroda Government Director Ashok Kumar Garg and two retired Indian Administrative Service officers will be a part of the board, Paytm mentioned in an alternate submitting.
The brand new board members’ experience will likely be ”pivotal in guiding us towards enhancing our governance constructions and operational requirements, additional solidifying our dedication to compliance and finest practices”, Paytm Funds Financial institution CEO Surinder Chawla mentioned.
Paytm helps its banking unit’s transfer of choosing a board with solely unbiased and government administrators by eradicating its nominee, it mentioned, including Sharma was additionally stepping down from the board to ”allow the transition”.
Mr Sharma owns a 51 per cent stake in Paytm Funds Financial institution, whereas One 97 Communications, as Paytm is formally identified, owns the remainder.
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