SEBI Takes Action Against Ola Electric For Violation Of Disclosure Norms

Electric vehicle maker Ola Electric has received an warning notice from the Securities and Exchange Board of India (SEBI) for breaching disclosure rules. 

According to a regulatory filing on January 7, 2025, SEBI flagged the company for sharing information about its business expansion plans on social media before informing the stock exchanges.

Violation of Disclosure Rules

SEBI’s warning stems from the company’s Chairman and Managing Director, Bhavish Aggarwal, announcing Ola Electric’s store expansion plans on social media on December 2, 2024. 

Aggarwal shared that the company aimed to open 3,200 stores by December 20 with a goal of 4,000 stores due to declining market share. However, the company postponed the store openings to December 25. 

Read also - Zomato Rejoins Quick-Commerce Race With 15 Minute Food Delivery Service

According to SEBI’s guidelines, all listed companies must disclose important information to the stock exchanges first, ensuring equal access for all investors. SEBI pointed out that Ola Electric failed to follow these norms which could have led to uneven access to information for investors.

As a result, SEBI has directed Ola Electric to present the warning letter to its board and take corrective action. The company has assured it will comply with the regulations moving forward and avoid similar issues in the future. This scrutiny comes as Ola Electric navigates its responsibilities after becoming a public limited company. 

The company confirmed that it will respond to SEBI within the extended deadline.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges and achieving success.