Ola Electric Faces SEBI Warning Over Disclosure Violations

Ola Electric Mobility Ltd. has come under scrutiny after receiving an administrative warning from the Securities and Exchange Board of India (SEBI). The warning pertains to a breach of disclosure regulations, raising concerns over the company’s compliance practices. Additionally, the Karnataka High Court has directed Ola Electric to address consumer protection issues.

SEBI Warning for Disclosure Violations

In an email dated January 7, SEBI issued a formal warning to Ola Electric for violating regulations under SEBI Disclosure Regulations, 2015. The violation stemmed from the company’s announcement of a four-fold expansion of its store network by December 2024. 

While the announcement was officially informed to stock exchanges after 1:30 PM on December 2, 2024, it had already been disclosed earlier that day by Ola Electric’s Chairman, Bhavish Aggarwal, on the social media platform before 10 AM. SEBI’s warning emphasised the seriousness of the violation and urged Ola Electric to enhance compliance standards to avoid recurrence. The company clarified in an exchange filing that the warning carries no financial implications.

Karnataka High Court’s Extension for CCPA Response

In a separate legal matter, the Karnataka High Court granted Ola Electric an additional 6 weeks to respond to notices issued by the Central Consumer Protection Authority (CCPA). These notices relate to allegations of consumer rights violations, misleading advertisements, and unfair trade practices. Justice R. Devdas upheld the authority of the investigating officer, directing Ola Electric to submit the requested documents.

The company stated that 99.1% of the 10,644 consumer complaints raised by the CCPA had been resolved, reiterating its commitment to consumer satisfaction.

OLA Electric Share Performance

As of January 08, 2025, 9:50 AM, the shares of OLA Electric were trading at ₹75.65 with a decline of 4.43% from its previous day’s closing price.

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