SEBI lens on Paytm after debut debacle that wiped out Rs 38,000 cr

SEBI has an eye on the payment merchant Paytm after a listing debacle that wiped out Rs 38,000 cr of investor wealth. Business Standard reports quoting sources that the market regulator plans to question the investment banks that handled Paytm’s initial public offering. Paytm shares fell over 27% on Day 1, marking the worst debut for any IPO over Rs 1,000 cr. 

Morgan Stanley, Goldman Sachs, Axis Capital, ICICI Securities, JP Morgan, Citibank, and HDFC Bank were the seven investment banks that handled Patym’s Rs 18,300-crore share sale that received a lukewarm response. 

Business Standard reports that the capital markets regulator will seek investment bankers' view on why the stock tanked on the listing day. It also plans to examine if any comments made by the company officials or the bankers could have misled investors.