PB Fintech shares drop nearly 3% on SEBI notice to CEO over $2-million investment in Dubai

According to an exchange filing by the financial technology company, Yashish Dahiya, the chairman and CEO of PB Fintech, has received a show-cause notice from SEBI for an investment of $2 million by PB Fintech FZ-LLC, Dubai, on November 17, 2022. The company had acquired a 26.72% stake in YKNP Marketing Management through this investment.

The show-cause notice (SCN) issued under SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995, and Sections 15-I and 15HB of the SEBI Act, 1992 was received on June 5, the company informed the stock exchanges.

PB Fintech in the filing stated that the $2 million investment was not considered Unpublished Price Sensitive Information (UPSI) due to the non-material value of the transaction.

“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.

PB Fintech shares rose up to 1% to hit a high of ₹1,302.55 per share on NSE on Friday. However, the stock dropped as much as 2.83% to a low of ₹1,252.75 apiece.

PB Fintech shares were trading 0.46% lower at ₹1,283.45 per piece on the NSE at 12:09 pm.

Chinese conglomerate Tencent sold 33 lakh shares, representing 0.73% of shareholding of PB Fintech, for ₹415 crore in block deals on Thursday.

Tencent Cloud Europe BV, an affiliate of Tencent, offloaded the shares at an average price of Rs 1,259.71 apiece on NSE.

Last month, Tencent sold around 55 lakh shares or a 1.2% stake for ₹677 crore.

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