Markets regulator Sebi warns Ola Electric for violating disclosure norms

Markets regulator Securities and Exchange Board of India (Sebi) has pulled up Ola Electric Mobility in an administrative warning letter over disclosure violations. Ola Electric received the letter on January 7 via email, the company informed the exchanges. 

 

According to the letter issued by Sebi, the electric vehicle manufacturer announced its expansion plans on microblogging platform X (formerly Twitter), before informing the exchanges. However, the warning has no material impact on the company's financials, Ola Electric said. 

 

The warning pertains to Chief Executive Officer Bhavish Aggarwal's announcement of four-fold expansion plans. On December 20, 2024, Aggarwal wrote on X, "Taking the Electric revolution to the next level this month. Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible. All stores opening together on 20th Dec across India. Probably the biggest single day store opening ever!"

 

The expansion, however, took place on December 25, 2024.   

 

According to the exchange filing, Sebi issued the administrative warning letter in connection with the violation of regulations 4(1)(d), 4(1)(f), 4(1)(h) and 30(6) of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 with respect to channels for disseminating information shall ensure equal, timely, and cost-efficient access to relevant information for all investors.

 

"By failing to first disseminate the information on the stock exchanges and instead announcing it on a social media platform, you have failed to provide equal and timely access to information for all," the market regulator said in its warning letter. 

 

The letter further stated, "It is observed that whereas the aforesaid information was disseminated on the stock exchanges by you at 1:36 PM (BSE) and 1:41 PM (NSE) on December 2, 2024, it was announced beforehand on X (formerly Twitter) at 9:58 AM on December 2, 2024 by Mr. Bhavish Aggarwal, your promoter and Chairman-cum-Managing Director."

 

"The above violations have been viewed very seriously. You are hereby warned and advised to be areful in the future and to improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action may be initiated in accordance with the provisions of the Securities and Exchange Board of India Act, 1992 and the Rules and Regulations

framed thereunder," the letter noted.