The Securities and Exchange Board of India (SEBI) has warned Ola Electric against sharing company-related news on social media before disclosing it to investors, adding to the woes of the electric two-wheeler maker.
- New showrooms were announced on social media on December 2
- Investors were informed about it four hours later, violating disclosure norms
- Ola Electric has been facing the heat regarding service issues
The letter from the market regulator, disclosed by Ola Electric, stated that the company had failed to provide “equal and timely access” to investors regarding a planned store expansion.
On December 2, 2024, the company’s founder, Bhavish Aggarwal, first shared the news about new store openings on social media and, four hours after that, informed the investors via stock exchanges. Publicly listed firms are mandated to disclose any information first to investors via exchange filings and not more than 12 hours after the event takes place.
Ola Electric, which went public in August last year, opened 3,200 new stores and service centres the previous month to expand reach and address increasing complaints pertaining to service standards.
“The above violations have been viewed very seriously. You are hereby warned,” SEBI said in its letter. This letter marks the latest regulatory scrutiny on the electric two-wheeler maker following a government agency’s investigation into its service standards.