SEBI issues warning letter to Ola Electric Mobility on violation of disclosure norms, shares slip 4%

Ola Electric noted that there are no financial implications due to this warning in an exchange filing.

The Securities and Exchange Board of India (SEBI) issued an administrative warning to EV player Ola Electric Mobility on January 7 for violation of disclosure rules.

At 9.35 am on January 8, Ola Electric Mobility shares were down four percent at Rs 76.14 on the National Stock Exchange from the previous close

Bhavish Aggarwal, the Chairman and Managing Director of the firm, had shared details of Ola Electric's plans for a four-fold expansion on social media platform X, formerly known as Twitter, before the disclosure was shared with the exchanges.

Bhavish Aggarwal wrote, "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."

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

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Bhavish Aggarwal (@bhash) December 2, 2024

The post was shared on X at9:58 AM on December 2, 2024. However, SEBI noted that the information was disseminated on the stock exchanges by the firm at 1:36 PM (BSE) and 1:41 PM (NSE) on December 2, 2024.

The regulator's rules state that “the listed entity shall first disclose to the stock exchange(s) all events or information which are material in terms of the provisions of this regulation as soon as reasonably possible and in any case not later than... twelve hours from the occurrence of the event or information, in case the event or information is emanating from within the listed

entity.”

However, it is observed that the aforesaid information was not first disclosed to the stock exchanges and the disclosure was not made on the stock exchanges as soon as reasonably

possible, said SEBI.

The regulator added, "By making the aforesaid announcement first on a social media platform instead of disseminating it on the stock exchanges, [Ola Electric has] failed to take into consideration the interest of all [its] stakeholders and follow [its] obligations in letter and spirit."

"The above violations have been viewed very seriously. You are hereby warned and advised to be

careful in the future and to improve your compliance standards to avoid recurrence of such

instances, failing which appropriate enforcement action may be initiated," the letter further stated.

"You are also advised to take corrective steps, place this communication and the corrective steps taken before your Board of Directors and disseminate a copy of this communication on the stock exchanges that you are listed on," SEBI said.

Ola Electric noted that there are no financial implications due to this warning in an exchange filing.

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