Ola Electric Mobility Ltd. has received a formal warning from the Securities and Exchange Board of India (SEBI) for failing to adhere to disclosure norms under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The issue stems from a December 2, 2024 incident when Ola Electric Chairman Bhavish Aggarwal announced plans to expand the company’s store network fourfold on social media before officially informing the stock exchanges.
SEBI’s Findings
According to SEBI, Aggarwal’s post on X (formerly Twitter) was shared at 9:58 a.m., while the company communicated the same information to the Bombay Stock Exchange (BSE) at 1:36 p.m. and the National Stock Exchange (NSE) at 1:41 p.m.
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This delay violated SEBI regulations, which require material information to be disclosed to stock exchanges first and simultaneously made available to all investors. SEBI emphasized the importance of ensuring equal access to information and issued a caution to Ola Electric to avoid such lapses in the future.
Company Response
Ola Electric stated that the warning would not affect its financial or operational performance. In its official response, the company assured SEBI and investors that it would strengthen its processes to comply with disclosure norms and prevent any recurrence of similar issues.
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The company also confirmed that the warning letter would be presented to its Board of Directors and submitted to all relevant stock exchanges.
