New Delhi, April 16 -- Paytm said on Wednesday its founder and chief executive officer (CEO) Vijay Shekhar Sharma has foregone 21 million employee stock options granted to him, months after the Securities and Exchange Board of India (SEBI) issued show-cause notices over violation of rules on grant of share-based employee benefits.

Last August, the capital markets regulator determined that the grant of 21 million employee stock options (ESOPs) to Sharma violated rules governing share-based employee benefits. As per SEBI rules, a large shareholders with the ability to influence company decisions cannot hold ESOPs.

The shares were granted to Sharma as part of ESOP at the time of the listing of One97 Communications, which owns the Paytm bra...