Softbank executives to resign from Paytm and Policybazaar directories
Representing Japanese investment bank Softbank to Indian fintech firms Paytm and Policybazaar, Munish Verma is stepping down from the organisations’ sheets. Two well-informed individuals affirmed the turn of events. The choice to step down from the boards of registered organizations is critical to Softbank’s global strategy of not serving on the boards of registered organizations. Paytm did not comment on the response to the email sent by Business Standard. Policybazaar and Paytm had made no disclosures about the resignation of any board member. SoftBank claims a 17.4% stake in Paytm and a roughly 12.4% stake in Policybazaar.
Industry experts said that usually such a decision is made because the investor’s main goal is to invest, and they do so in similar businesses. “By being on the board of the company, they are aware of the information shared by the company with the board,” the source said.
“The bank communicated this aspect to the companies at the time of listing. They prefer not to be part of the boards of listed companies because their main objective is investment. In very few selective cases, Softbank has remained on board a few profitable companies,” a source with knowledge said. Softbank will, however, retain the investments it holds in these companies.
Summary of news:
- Softbank executives to resign from Paytm and Policybazaar directories
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