Representatives of SoftBank Group Corp will step down from the boards of Indian digital payments firm Paytm and the parent of online insurance aggregator Policybazaar, a person with direct knowledge of the matter said.
The decision is part of SoftBank‘s global strategy to exit from the boards of most of its listed portfolio companies, said the source, adding that the Japanese tech conglomerate expected it would leave fewer regulatory issues to tackle.
SoftBank will, however, retain its shareholding in the two Indian companies, added the source, who spoke on condition of anonymity as the matter has not yet been made public.
SoftBank, Paytm and Policybazaar did not immediately respond to Reuters request for comment.
The news came on the same day shares in Paytm tumbled more than 12%, after the central bank barred the company’s payments bank from taking on new customers and ordered an audit of its IT systems.
The Reserve Bank of India said on Friday it would allow Paytm Payments Bank to take on new customers subject to specific permission after reviewing the IT auditor’s report.
Both Paytm, formally known as One97 Communications, and PB Fintech Ltd, the parent of Policybazaar, went public last year. Business news website Moneycontrol first reported the development.
• Reuters with additional editing by Jim Pollard
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