SEBI Issues Warning Latter to Ola Electric Over Violation of Disclosure Norms

Ola CEO Bhavish Aggarwal came under fire after the Securities and Exchange Board of India (SEBI) issued stern warning to Ola Electric Mobility Limited. The market regulator came down heavily after the company violated disclosure norms by announcing expansion plans on social media before informing stock exchanges.

Earlier, Bhavish Aggarwal posted plans for a four-fold expansion of company-owned stores on X at 9:58 am, before informing BSE (1:36 PM) and NSE (1:41 PM).

While warning the company to improve its compliance standards or face potential enforcement action, SEBI said in a letter, “The above violations have been viewed very seriously.” The company has violated four provisions under the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The company has failed to provide timely information to the stock exchanges, thereby not keeping stakeholder interests on the forefront by prioritising social media announcements over proper exchange disclosures.

In an ongoing case with the Central Consumer Protection Authority, Karnataka High Court has sought a response from Ola Electric by granting an extension of six-weeks.

As of 1:00 pm, shares of Ola Electric Mobility Ltd are trading at ₹77.35, down 2.22%.