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Ola Electric receives SEBI warning over disclosure violation

EntrackrEntrackr · 5m ago
Ola Electric receives SEBI warning over disclosure violation
Medial

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.

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Ola Electric under alleged insider trading probe; company responds

EntrackrEntrackr · 2m ago
Ola Electric under alleged insider trading probe; company responds
Medial

Ola Electric under alleged insider trading probe; company responds Ola Electric issued a clarification through a stock exchange filing, stating that the trades referred to were routine transactions involving shares acquired through exercising these ESOPs and not through the open market purchase. Ola Electric is reportedly under the regulatory lens, claiming that SEBI may investigate the electric vehicle maker for alleged insider trading. According to the report, the probe concerns suspicious trading patterns in the company's unlisted shares ahead of key internal developments. In response, Ola Electric issued a clarification through a stock exchange filing, stating that the trades referred to were routine transactions involving shares acquired through exercising these ESOPs and not through the open market purchase. The development follows an earlier warning from SEBI in January 2025, when the regulator flagged Ola Electric for breaching disclosure norms. At the time, the company had publicized a major retail expansion via social media before informing the stock exchanges, prompting SEBI to caution the startup against selective disclosure and remind it to adhere strictly to disclosure regulations under the SEBI (LODR) rules. In February 2025, a discrepancy emerged between Ola Electric’s reported sales figures of 25,000 vehicles and the approximately 8,600 vehicle registrations recorded on the government’s VAHAN portal. Ola Electric explained that the gap was a result of ongoing negotiations with its vehicle registration vendors. In April, the company secured the second position in the electric two-wheeler segment, with TVS Motor emerging as the market leader. Ola Electric's share price has declined to Rs 48.53, bringing its estimated market capitalization down to Rs 21,405 crore (approximately $2.5 billion). In Q3 FY25 (ended December 2024), the company reported a 19.4% year-on-year drop in operating revenue, falling to Rs 1,045 crore from Rs 1,296 crore in the same quarter last year. At the same time, its net loss widened significantly—up 50% year-on-year—to Rs 564 crore. Disclaimer: Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever.

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