SEBI Issues Notice to Ola Electric Over Disclosure Breach
Click to start listening
New Delhi, Jan 8 (NationPress) The electric vehicle (EV) company Ola Electric Mobility Limited has been formally cautioned by the markets regulator, the Securities and Exchange Board of India (SEBI), for breaching disclosure regulations.
The issue arose because Ola Electric chose to reveal its expansion plans for e-scooters primarily on social media rather than through official stock exchange announcements.
In an administrative warning sent via email on January 7, citing violations of various sections of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the regulator emphasized the need for "equal, timely, cost-efficient access to relevant information for all investors" through stock exchanges.
“By not first disseminating the information on the stock exchanges and opting for social media platforms instead, you have compromised equal and timely access to information for all investors,” the SEBI warning stated.
Ola Electric's Founder, Bhavish Aggarwal, shared a video on his X account on December 2 before 10 a.m., outlining his ambition to expand the company’s sales network nearly fourfold by December 20. The company subsequently communicated with the exchanges after 1:30 p.m. on the same day.
SEBI's warning letter mentioned, "The mentioned violations are being taken very seriously. You are advised to exercise caution in the future and enhance your compliance standards to prevent similar occurrences, or else appropriate enforcement actions may follow."
As of Wednesday at approximately 10:13 a.m., shares of the EV company dropped by 4.78 percent to ₹75.38 per share.
Additionally, Ola Electric's market share fell by 5 percent month-on-month, settling at 19 percent in December, down from 24 percent in November, thus losing its position as the leading Indian two-wheeler EV company.
