Ola Electric Mobility Limited was issued an administrative warning by the Securities and Exchange Board of India (SEBI) on Tuesday for breaking multiple regulations. In a stock exchange filing, Ola Electric stated that the warning is for the disclosure of significant information about a planned store network expansion.
SEBI found that the company's Chairman, Bhavish Aggarwal, announced the expansion on social media before it was notified to stock markets, violating requirements requiring the timely and equal distribution of material information. Ola Electric announced plans to build 3,200 new stores last month, with the goal of expanding beyond metro and tier I and II cities to include smaller towns and tehsils.
The warning notice highlighted violations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These requirements require listed firms to offer timely and equitable access to relevant information for all investors, ensuring openness and fairness. SEBI has instructed Ola Electric to enhance its compliance standards and warned of future enforcement action if such infractions are repeated.
Ola Electric hired Pritam Das Mohapatra as its new Company Secretary and Compliance Officer last week. Mohapatra's new responsibilities will include managing the company's regulatory compliance and governance framework to guarantee that SEBI requirements and corporate governance standards are met.
In a related event, the Karnataka High Court allowed Ola Electric a six-week delay to reply to a Show Cause Notice issued by the Central Consumer Protection Authority (CCPA). The warning was sent to the Bengaluru-based company in October of last year in response to a spike in consumer complaints alleging infringement of consumer rights, misleading advertising, and unfair practices.
