Indian market regulator SEBI (Securities and Exchange Board of India) has issued a warning to Ola Electric. SEBI has termed the company’s disclosure of its expansion plans on social media platform ‘X’ (formerly Twitter) as a violation of rules. This disclosure was made before the information was given to the stock exchanges, which is in violation of the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR).
SEBI’s allegation: Violation of regulation
SEBI cautioned Ola Electric in the context of its stock exchange disclosures dated December 2, 2024.
- Ola Electric shared information about its plan to expand its store network four times on December 2, 2024, on the stock exchanges (BSE and NSE) in the afternoon.
- But, even before this at 9:58 am, the company’s Chairman and Managing Director Bhavish Aggarwal had posted this information on the social media platform ‘X’.
Reference to SEBI rules
SEBI quoted LODR Regulation 30(6)(ii) as saying:
- The listed entity must first disclose any significant event or information to the stock exchanges.
- This disclosure must be made within 12 hours of the occurrence of the incident or information.
SEBI said that Ola Electric first shared the information on social media, whereas it should have been given to the stock exchanges first.
What was Ola’s announcement?
Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, wrote on social media on December 2, 2024:
“Record 4,000 Ola Electric stores inaugurated on December 25, Christmas Day! ‘Savings Wala Scooter’ will now be available in every city, town and tehsil! Visit your nearest store and be a part of the electric revolution.”
SEBI instructions
- SEBI has clarified that this is a violation of rules and the company should have given priority in providing information to the stock exchanges.
- SEBI has warned that the company will have to strictly follow LODR guidelines to avoid such incidents in future.
