BENGALURU: Markets regulator Sebi issued a warning to Ola Electric Mobility for violating disclosure norms after its founder, Bhavish Aggarwal, announced key expansion plans on social media before notifying the stock exchanges. This move contravenes market regulations designed to ensure timely and equitable dissemination of price-sensitive information.
The incident occurred on Dec 2 when Aggarwal posted on X about plans to expand the company's retail footprint. Aggarwal disclosed an ambitious plan to scale Ola Electric's store network from 800 to 4,000 by Dec-end, calling it "probably the biggest single-day store opening ever" slated for Dec 20. However, this announcement was made on social media hours before the required disclosure was submitted to the BSE and the NSE.
In a letter sent to Ola on Tuesday, Sebi cited multiple violations of disclosure norms under the Sebi Act, 1992. The regulator emphasised the seriousness of the breach and warned Ola Electric against future lapses. "You are hereby warned and advised to be careful in the future and to improve your compliance standards to avoid recurrence of such instances," the letter said.
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