On Wednesday, January 8, shares of Ola Electric Mobility fell 1.34% to a day’s low of Rs 75.16 on the BSE after the Securities and Exchange Board of India (SEBI) issued an administrative warning for violation of disclosure rules.
SEBI issued the warning on January 7, citing violations of Disclosure Rules, 2015, Regulations 4(1)(d), 4(1)(f), 4(1)(h), and 30(6).
The warning relates to Ola Electric’s announcement that the network of company-owned stores will grow fourfold by December 20, 2024.
On December 2, 2024, the corporation informed the exchanges after 1:30 pm, although Chairman and Managing Director Bhavish Aggarwal had announced “X” before 10 am on that day.
“We have taken the above violations very seriously. To prevent recurrence of such incidents, you are now cautioned and advised to exercise due diligence and enhance your compliance standards going forward; otherwise, appropriate enforcement action may be taken,” the Sebi letter said. In its exchange report, Ola Electric made it clear that this warning has no financial implications.
The CCPA had previously issued a show-cause notice to Ola Electric for alleged unfair commercial practices, misleading advertising, and violation of consumer rights. The business claimed to have addressed 99.1% of the 10,644 CCPA complaints it received.
Ola Electric shares drop 4% after SEBI warning
