Ola Electric Warned by Sebi for Premature Announcement

Sebi has warned Ola Electric Mobility for breaching listing norms by disclosing store expansion plans on social media before informing stock exchanges. Ola planned to increase its store network by four times to 4,000 by December 2024. The Karnataka High Court granted an extension to submit additional documents related to consumer complaints.

The Securities and Exchange Board of India (Sebi) has issued a warning to Ola Electric Mobility for prematurely sharing its expansion plans on social media prior to notifying stock exchanges. The regulatory body found the company in violation of listing norms, highlighting the importance of compliance for corporate transparency.

According to a filing by Ola Electric on the Bombay Stock Exchange (BSE), information regarding a significant four-fold increase in its company-owned store network was shared by Bhavish Aggarwal on social media platform X (formerly Twitter), ahead of official disclosure to the BSE and National Stock Exchange (NSE).

Meanwhile, the Karnataka High Court has provided Ola Electric with an additional six weeks to furnish further documents requested by the Central Consumer Protection Authority (CCPA). This follows a show-cause notice relating to over 10,000 consumer complaints, of which the company claims to have resolved 99.1%.

(With inputs from agencies.)