Leading fintech company, Paytm, has been fined multiple times for failing to pay stamp duties on equity shares allocated after employees exercised stock options (ESOP) granted in previous years.

In one instance, Paytm was fined INR 250 for not paying INR 199 in stamp duty on 3,828 shares allocated in 2017. Another fine of INR 370 was imposed for similar non-compliance. The company attributed the delays to late submission of applications for stamp duty payment. Paytm anticipates more such orders as the Office of Collector of Stamps processes its applications.

This development follows a show-cause notice from SEBI regarding 2.1 crore stock options granted to CEO Vijay Shekhar Sharma in FY22. Paytm also received a warning from SEBI over related party transactions with Paytm Payments Bank.

On the financial front, Paytm is grappling with a widening net loss and declining revenue. In the first quarter of the fiscal year 2025, the company reported a net loss of INR 840.1 crore, a significant increase compared to the same period last year. Revenue also experienced a sharp decline, raising concerns about the company’s growth trajectory and profitability.

Despite these challenges, Paytm remains a major player in India’s fintech industry. The company continues to expand its services and offerings, recently partnering with Axis Bank to offer point-of-sale solutions and card payment machines to its merchant network. This strategic partnership aims to strengthen Paytm’s position in the offline payments market and diversify its revenue streams.

Paytm’s future trajectory will depend on its ability to address these regulatory and financial challenges effectively. The company needs to demonstrate a commitment to compliance and transparency to regain the trust of investors and regulators. Additionally, it needs to focus on improving its financial performance and demonstrating a clear path to profitability. The fintech landscape in India is rapidly evolving, and Paytm’s success will depend on its ability to adapt and innovate in this dynamic environment.