Shares of PB Fintech Ltd were trading in the red and 2% lower on 5 August after the Insurance regulator IRDAI issued a Rs 5 crore fine on the company’s online insurance aggregator, Policybazaar, for regulatory violations linked to directorships held by key managerial individuals.

In its regulatory filing, the company said, “IRDAI issued an Order dated 4 August 2025, levying a penalty in aggregate of Rs 5 crores for violation of provisions of applicable IRDAI Regulations with respect to certain aspects pertaining to Directorships held by Key Managerial Personnel (KMPs) and principal officer (PO), product display, Outsourcing Agreements, tagging of policies and premium remittance.”.

The penalty also applies to areas such as its principal officer (PO), product display, outsourcing agreements, policy tagging, and premium remittance, according to PB Fintech.

IRDAI inspected Policybazaar in June 2020 and issued a show cause notice to PB Fintech in October 2024.

According to PB Fintech, IRDAI has issued ‘further directions/advisory’ which must be followed within a specific timeframe. The corporation has not specified what those new directions are.

According to management, the penalty’s financial impact is limited to the specified amount, and it expects no impact on Policybazaar’s operations or other activities. The order will be presented to the Board at the future meeting, and an action taken report will be sent to the authorities, it added.

In a related case, in June 2024, market regulator Sebi issued a Show Cause Notice to Yashish Dahiya, Chairperson and CEO of PB Fintech, for a Dubai investment made in 2022.

At 12:24 pm, the shares of PB Fintech were trading 0.89% lower at Rs 1,765 on NSE. 

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