SEBI issues notice to PB Fintech chairperson on $2M investment
The show cause notice, dated June 05, 2024, pertains to an investment of Rs 2 million by PB Fintech FZ-LLC, Dubai, for a 26.72% stake in YKNP Marketing Management on November 17, 2022.
Policybazar parent Limited has disclosed a show cause notice (SCN) issued by the Securities and Exchange Board of India (SEBI) to its Chairperson and CEO, Yashish Dahiya, under SEBI regulations.
The SCN, dated June 05, 2024, pertains to an investment of Rs 2 million by PB Fintech FZ-LLC, Dubai, for a 26.72% stake in YKNP Marketing Management on November 17, 2022, which was not considered 'unpublished price sensitive information' due to the non-material value of the transaction, PB Fintech disclosed in an exchange filing.
The SCN was issued for alleged violation of Clause 4(1) of Schedule B and Regulation 9A(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015.
"It is clarified that on account of the SCN, there is no material impact on financials, operations or other activities of the Company. Further, the Company is seeking legal advice to take appropriate steps with respect to the SCN in the due course of time," PB fintech said in a statement.
The investment provided PB Fintech FZ-LLC access to UAE banks, enabling the company to begin sourcing customers by leveraging the YKNP agreement and its field force. Additionally, as YKNP conducted the majority of its business with the Arabic population, PB Fintech gained access to a sales team capable of catering to Arabic-speaking customers.
Recently, in January, PB Fintech turned profitable with a Rs 37 crore PAT in Q3 of FY24, a turnround from the Rs 87-crore loss in the corresponding period last year.
In May, the company said it recorded a net profit of Rs 60.1 crore for the quarter ending March 31, 2024, its second consecutive profitable quarter, marking a 62% increase from the previous quarter when it reported its maiden profit of Rs 37 crore.
Edited by Swetha Kannan
