Shares of PB Fintech Ltd were trading in the green and 1% higher on 7 June after the company’s chairperson and CEO, Yashish Dhaiya, received a show cause notice from the market regulator, SEBI. 

In its regulatory filing, the company said that the show cause notice is related to a $2 million investment in Dubai-based marketing company YKNP Marketing Management, through the company’s arm PB Fintech FZ-LLC, Dubai. 

PB Fintech FZ-LLC had acquired a stake worth 26.72% in November 2022 that was ‘not considered’ Unpublished Price Sensitive Information (UPSI) as the value of the transaction was ‘non material’.

The company will take legal advice to take appropriate steps in due course. The stake purchase was to get access to UAE banking and sales teams to cater to Arabic customers.

The notice has no material impact on the company’s financials, operations or other activities. 

Earlier on 6 June, around 33 lakh shares of the company, representing 0.73% stake of the company changed hands on the exchanges at an average price of Rs 1,297 per share, taking the total deal value to 428.10 crore.

Over the past year, Tencent, Temasek Holdings, SoftBank, and BNP Paribas have offloaded their stake in the company. 

At 11:59 am, the shares of PB Fintech shed all their early gains and was trading 0.50% lower at Rs 1,282.85 on NSE.