Shares of Policybazaar parent PB Fintech were trading almost flat on Friday after the firm’s CEO received a showcase notice from the market regulator regarding an investment in Dubai.

What Happened: The Securities and Exchange Board of India has issued a show cause notice to Yashish Dahiya, Chairperson and CEO of PB Fintech, regarding a Dubai investment made in 2022, according to a regulatory filing by the company.

The notice concerns a $2 million (₹16.7 crore) investment in a Dubai-based marketing company, YKNP Marketing Management, through PB Fintech’s subsidiary in Dubai.

‘Not-Material’ Transaction: In November 2022, the company acquired a 26.72% stake in YKNP Marketing Management, which it said was not deemed to be unpublished price sensitive information (UPSI) as the transaction value was deemed non-material, according to the firm. PB Fintech mentioned it is seeking legal advice to determine the appropriate steps moving forward.

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The stake acquisition aimed to provide PB Fintech access to United Arab Emirates banking and a sales team to cater to Arabic customers. Previously, in August 2022, PB Fintech had disclosed a $4 million (₹33.4 crore) investment to acquire a stake in YKNP Management.

PB Fintech also stated that the notice will not have a material impact on the company’s financials, operations, or other activities.

Price Action: PB Fintech’s share price was trading flat near the start of trading on Friday, recovering early losses.

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