Ola Electric receives SEBI warning over disclosure violation

Ola Electric Mobility Limited received an administrative warning from the Securities and Exchange Board of India (SEBI) on Tuesday for violating several regulations.

In a stock exchange filing, Ola Electric disclosed that the warning pertains to the dissemination of material information about a planned expansion of its store network.

SEBI observed that the company’s Chairman, Bhavish Aggarwal, announced the expansion on social media before it was disclosed to stock exchanges, thereby breaching regulations that require the timely and equal dissemination of material information.

Last month, Ola Electric announced plans to open 3,200 new stores, aiming to expand beyond metro and tier I and II cities into smaller towns and tehsils.

The warning letter highlighted violations of regulations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These regulations mandate that listed entities provide timely and equal access to relevant information for all investors, ensuring transparency and fairness.

SEBI has advised Ola Electric to improve its compliance standards and warned of potential enforcement actions if such violations recur.

Last week, Ola Electric appointed Pritam Das Mohapatra as the new Company Secretary and Compliance Officer. In his new role, Mohapatra will be responsible for overseeing the company’s regulatory compliance and governance framework to ensure adherence to SEBI regulations and corporate governance standards.

In a separate development, Ola Electric has been granted a six-week extension by the Karnataka High Court to respond to a Show Cause Notice issued by the Central Consumer Protection Authority (CCPA). The Bengaluru-based company received the notice in October last year due to an increase in consumer complaints, citing alleged violations of consumer rights, misleading advertisements, and unfair practices.