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Japanese investment bank Softbank representative on Indian fintech firms Paytm and Policybazaar, Munish Verma is stepping down from the companies’ boards. Two people in the know confirmed the development.
The decision to step down from the boards of listed company is part of Softbank’s global strategy to not be on boards of listed companies.
“The bank has communicated this aspect to the companies at the time of the listing. They prefer not to be part of the boards of listed companies as their primary goal is of investment. In very few selective cases Softbank has stayed on board of few investee firms,” said a source in the know. Softbank will however retain the investments that it has in these firms.
Paytm did not comment on the respond to the email sent by Business Standard. Both Policybazaar and Paytm had made no disclosure on board member stepping down to the exchanges.
SoftBank owns 17.4 percent stake in Paytm and around 12.4 percent stake in Policybazaar.
Experts in the sector said that generally such a decision is taken because the primary goal of the investor is to invest, and they do so in similar firms. “By being on the board of the firm they are privy to information shared by the company to the board,” said the source.
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