PB Fintech CEO Yashish Dahiya Gets Show Cause Notice From SEBI Over $2 Mn Investment

Listed fintech major PB Fintech’s chairperson and CEO Yashish Dahiya has received a show cause notice from markets regulator Securities and Exchange Board of India (SEBI). 

The show cause notice (SCN) pertains to a $2 Mn investment made by PB Fintech FZ-LLC, Dubai in outsourced marketing services provider YKNP Marketing Management in November 2022 to acquire a 26.72% stake, the Policybazaar parent said in an exchange filing. 

PB Fintech FZ-LLC is a wholly owned subsidiary of PB Fintech. Following the investment,  YKNP became an associate of PB Fintech FZ-LLC.

The SCN was issued to Dahiya for violating Clause 4(1) of Schedule B and Regulation 9A(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015. 

In the exchange filing, the company said it did not consider the investment an unpublished price sensitive information (UPSI) due to its “non-material value”. 

“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,” the filing said. 

YKNP provides services like lead generation, sales consulting, co-sourcing and sales outsourcing.

At the time of stake acquisition, PB Fintech said the partnership will help it get access to banks of the UAE. Besides, it would also help it get access to a sales team which can cater to Arabic customers. 

The development comes at a time when PB Fintech is looking to increase its presence in the UAE market. Last month, it acquired 100% stake in UAE-based Genesis Group, owned by Dahiya via YD Holdings, through the insurtech’s wholly owned subsidiary Icall Support Services. 

PB Fintech, which also operates Paisabazaar, posted a consolidated net profit of INR 60.2 Cr in Q4 FY24 after turning profitable in the preceding quarter. Operating revenue zoomed 25% quarter-on-quarter as well as year-on-year (YoY) to INR 1,089.6 Cr in Q4. 

Last month, Dahiya offloaded 54 Lakh shares of the company for INR 715 Cr via open market transactions. 

Shares of PB Fintech ended today’s trading session 0.42% lower at INR 1,288.55 on the BSE. 

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