Shares of One97 Communications were down nearly 13 percent on Monday after the RBI asked Vijay Shekhar Sharma-promoted Paytm Payments Bank to stop opening new accounts amid “major supervisory problems” observed at the bank.
Softbank executive Munish Ravinder Varma has resigned from the boards of digital financial services firm One97 Communications, which operates under the Paytm brand, and PB Fintech, according to regulatory filings by both companies on Tuesday.
Softbank Vision Funds India Holdings (Cayman) has a 17.47 percent stake in Paytm.
“Munish Ravinder Varma, non-executive, non-independent director of the company, has resigned via a letter of resignation dated March 14, 2022, effective as of the closing of business hours on March 14, 2022, due to personal obligations and other preoccupations” , Paytm said in a file.
PB Fintech, owner of brands like Policy Bazaar, Paisa Bazaar also announced Varma’s resignation from the board.
SVF has a 5.77 percent stake in PB Fintech.
Japanese investor Softbank is withdrawing its representative from the boards of Indian listed entities Paytm and Policy Bazaar as part of its global policy.
However, according to a source aware of the development, there will be no change in Softbank’s investments in these companies.
“As part of global policy, Softbank’s representative will step down from the board of directors of publicly traded companies in India. At the moment in this case there are two Indian entities: Paytm and Policy Bazaar. These companies have been informed of the decision,” said another source who is aware of the development.
The source said Softbank has exited 90 percent of portfolio companies worldwide within six months.
Shares of One97 Communications Ltd fell further on Tuesday by nearly 13 percent.
The stock plunged 12.28 percent to settle at Rs 592.40 on the BSE. On the NSE, it plunged 12.71 percent to settle at Rs 589.
Shares of One97 Communications were down nearly 13 percent Monday after the RBI asked Vijay Shekhar Sharma-promoted Paytm Payments Bank to stop opening new accounts amid “major supervisory problems” observed at the bank.
In two days, the company’s market valuation fell by Rs 11,809.43 crore to Rs 38,418.57 crore on the BSE.
This post Softbank representative Munish Varma resigns from Paytm, PB Fintech boards was original published at “https://www.financialexpress.com/industry/softbank-representative-munish-varma-resigns-from-paytm-pb-fintech-boards/2462265/”