SEBI warns Ola Electric over disclosure violations
Mumbai: The Securities and Exchange Board of India (SEBI) issued an administrative warning to Ola Electric Mobility for violating disclosure norms by announcing its expansion plans on social media before informing the stock exchanges.
Ola Electric received the letter via email on January 7, Business Standard reported.
The warning pertains to CEO Bhavish Aggarwal’s December 20, 2024, post on X (formerly Twitter), where he announced a significant expansion plan: opening 4,000 stores across India on the same day.
However, the expansion actually occurred on December 25.
The company clarified that the warning has no material impact on its financials.
SEBI’s warning cited violations of regulations 4(1)(d), 4(1)(f), 4(1)(h), and 30(6) under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
These rules mandate timely, equal, and cost-effective dissemination of information for all investors.
The regulator noted that Aggarwal’s announcement on X at 9:58 AM on December 20 preceded the company’s disclosures to stock exchanges, which were made at 1:36 PM (BSE) and 1:41 PM (NSE) the same day.
“The above violations have been viewed very seriously. You are hereby warned and advised to be careful in the future and to improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action may be initiated,” SEBI stated in its letter.
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