The Securities and Exchange Board of India (SEBI) has issued a warning to Ola Electric, citing violations of disclosure regulations. The electric two-wheeler company shared information about new showroom openings on social media before notifying its investors, raising concerns about transparency.
On December 2, 2024, Ola Electric’s founder, Bhavish Aggarwal, announced the launch of new stores on social media. However, the formal communication to investors through stock exchange filings came four hours later, contravening the requirement for publicly listed companies to provide timely and equal access to such information. SEBI mandates that material updates must be disclosed to investors first and no later than 12 hours after an event occurs.
This regulatory action adds to Ola Electric’s challenges as the company faces scrutiny over service-related issues. Just a month earlier, the company inaugurated 3,200 new stores and service centers to address customer concerns and enhance its reach.
In its warning letter, SEBI emphasized the seriousness of the breach, stating, “The above violations have been viewed very seriously. You are hereby warned.”
The warning follows heightened regulatory oversight on Ola Electric, which went public in August 2023. The company has been under investigation by a government agency regarding its service standards, further intensifying its regulatory pressures.
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