NEW DELHI — Electric vehicle (EV) company Ola Electric Mobility Limited has received an administrative warning from the markets regulator, the Securities and Exchange Board of India (SEBI), for violating disclosure norms.
The reason cited is that Ola Electric announced its e-scooter expansion plans first on social media instead of announcing it on the stock exchanges.
In an administrative warning, sent via email on January 7 for violating various sections of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the regulator asked the EV firm to ensure "equal, timely, cost-efficient access to relevant information for all investors” via stock exchanges.
“By failing to first disseminate the information on the stock exchanges and instead announcing it on social media platforms, you have failed to provide equal and timely access to information to all investors,” read the SEBI warning.
Ola Electric Founder Bhavish Aggarwal had posted a video on his X handle on December 2 before 10 a.m, in which he shared his plan to increase the company's sales network by nearly four times by December 20. The company later informed the exchanges post 1.30 p.m on December 2.
SEBI stated in its warning letter that "The above violations have been taken very seriously. You are warned and advised to be careful in future and improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action may be initiated."
On Wednesday, at around 10:13 am, the EV company's shares declined 4.78 per cent to Rs 75.38 per share.
In addition, Ola Electric's market share declined by 5 per cent on a MoM (month-on-month) basis to 19 per cent in December. It was 24 per cent in November, dethroning it as the top Indian 2-wheeler EV company.