Ola Electric Shares Dip 4% After SEBI Warning

8 Jan 2025 , 11:50 AM

On Wednesday, January 8, Ola Electric Mobility’s stock traded 1.34% lower to its day’s low of Rs 75.16 on the BSE following the Securities and Exchange Board of India’s (SEBI) administrative warning for breaking disclosure regulations.

Citing infractions of SEBI Disclosure Regulations, 2015, regulations 4 (1) (d), 4 (1) (f), 4 (1) (h), and 30 (6), SEBI issued the warning on January 7.

The caution relates to Ola Electric’s declaration that, by December 20, 2024, its network of company-owned stores would have grown fourfold.

On December 2, 2024, the corporation notified the exchanges after 1:30 PM, however Chairman and Managing Director Bhavish Aggarwal had previously announced “X” before 10 AM that day.

“We have taken the aforementioned infractions very seriously. In order to prevent the recurrence of such incidents, you are now cautioned and recommended to exercise caution going forward and to raise your compliance standards; otherwise, suitable enforcement action may be taken,” the SEBI letter said.

In its exchange report, Ola Electric made it clear that this warning has no financial ramifications.

The CCPA had previously issued show-cause notices to Ola Electric for alleged unfair commercial practices, deceptive advertising, and infringement of consumer rights. The business claimed to have addressed 99.1% of the 10,644 CCPA complaints that it had received.

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