Street signs: Ola Electric slides, bourses talk tie-up, Sebi plans revamps

Ola Electric's volatile stock, rising competition among exchanges, and Sebi's push to simplify regulations shaped a turbulent week for Indian markets

Bumpy ride amid biz uncertainties 

Shares of Ola Electric Mobility had a volatile week. The stock slumped 16 per cent over three sessions after founder Bhavish Aggarwal sold a 1.54 per cent stake for ₹234 crore. However, it recovered on Friday, gaining 10 per cent to trim weekly losses to about 6 per cent. Ola Electric shares have already plu­nged nearly 60 per cent over the past year. Analysts attribute the weakness to growing business uncertainties amid falling sales and shrinking market share. The latest stake sale by the founder, they add, has only deepened investor concerns. Experts say the stock is unlikely to find stability until the company delivers a sustained recovery in sales performance. 

Bourses look to team up to take on the giant 

Competition in the domestic exchange space is intensifying. While one player continues to dominate the market, rivals are stepping up efforts to gain a foothold. The Securities and Exchange Board of India’s (Sebi’s) decision to allow equity exchanges to enter commodities trading — and vice versa — has widened the competitive field, with at least half a do­zen players now eyeing a share of the lucrative equities market. Most, however, rem­ain at a nascent or planning stage when it comes to cracking the equities market. Sources say that two bourses are exploring a merger or a deep strategic collaboration in an attempt to challenge the market leader more directly. 

More revamps on the anvil 

Following a major revamp of two key regulations after three-decades, the market regulator is ready to skim more. The Securities and Exchange Board of India (Sebi) in its recent board meeting revised the stock broker regulations and mutual fund regulations, cutting down the length from 59 pages to 29 pages and from 162 pages to 88 pages, respectively. The next on the regulator’s list for overhauls are the Settlement Regulations, Listing

Obligation and Disclosure Requirements (LODR) Regulations, and Substantial Acquisition of Shares and Takeovers) Regulations. Sebi Chairman Tuhin Kanta Pandey recently said that the regulator is looking into the report submitted by a panel created to review the takeover regulations.