Bhavish Aggarwal-led Ola Electric receives SEBI warning over disclosure violation

Ola Electric Mobility Ltd. has received an administrative warning from the Securities and Exchange Board of India (SEBI) for failing to follow disclosure rules outlined in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

According to a letter dated Jan. 7, SEBI took issue with an instance where Ola Electric’s Chairman, Bhavish Aggarwal, revealed details about a planned four-fold expansion of the company’s store network on social media before disclosing the same information to the stock exchanges.

SEBI's observation

SEBI observed that Aggarwal’s announcement was posted on X (formerly Twitter) at 9:58 a.m. on Dec. 2, 2024, while the same information was sent to the BSE at 1:36 p.m. and the NSE at 1:41 p.m. later that day.

The regulator noted that Ola Electric violated multiple regulations, including rules that require listed entities to provide all material information to stock exchanges first and at the same time to all investors. SEBI warned the company to be more careful in the future and ensure strict compliance with disclosure standards.

No financial impact

Ola Electric said the warning would have no financial or operational impact on its ongoing activities. In its disclosure to the exchanges, the company pledged to follow SEBI guidelines, make timely announcements, and avoid repeating similar lapses.

It also confirmed that the warning letter will be placed before its Board of Directors and shared across all relevant stock exchanges.

In a separate development, Ola Electric was granted a six-week extension by the Karnataka High Court to respond to a Show Cause Notice issued by the Central Consumer Protection Authority in October last year.

The notice was prompted by an increase in customer complaints, which cited alleged violations of consumer rights and misleading advertisements.

Meanwhile, Ola Electric recently appointed Pritam Das Mohapatra as its new company secretary and compliance officer, indicating a renewed focus on strengthening governance and adhering to regulatory requirements.