New Delhi: Recently the SEBI has threatened Ola Electric Mobility Limited for the improper and lacking disclosure norms. This warning was made after Ola’s Chairman and CEO, Bhavish Aggarwal boasted of a major expansion plan on social media and shared with stock exchange later.
On December 2, 2024, Aggarwal tweeted at 9:58 AM about plans announced for Ola Electric where the company looks to ramp up outlets that directly sells its product to a capability of 4,000 from 800. However, the official announcements to the Bombay Stock Exchange (BSE) and the National Stock Bombay Stock Exchange (NSE) came much later closely at 1:36 PM and 1:41 PM respectively. As mentioned earlier in this paper, SEBI in a letter dated 7th January, 2025 observed that this amounted to breaching the provisions of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
The regulator said that Ola Electric did not disclose the relevant information to the stock exchanges in a timely and appropriate manner and that it did not guarantee equal access to news for all investors. First, the companySEBI failed to honor its responsibilities to stake holders by announcing a new product launch on social media platform only. SEBI recently advised Ola Electric to step up its compliance with these rules to avoid further stringent measures in future.
Ola Electric responded by saying the notice wouldn’t affect its financial position. The company has been told to share SEBI’s warning and its plans for improvement with its Board of Directors and also notify stock exchanges about the same.
This isn’t Ola Electric’s only regulatory issue. The company is also dealing with a case from the Central Consumer Protection Authority (CCPA). Recently, the Karnataka High Court gave Ola Electric six more weeks to respond to that matter.
After the SEBI warning became public, Ola Electric’s share price dropped by about 4%, falling to ₹76.14 before bouncing back slightly to close at ₹79.54. The dip reflects investor concerns about the company’s handling of regulations, especially as it faces increasing competition from electric vehicle makers like Bajaj and TVS.
This incident states that how important it is for publicly listed companies to follow disclosure rules. Sharing major updates through official channels first ensures all investors get fair and timely information.
