Ola Electric Has Popped Up On SEBI's Radar Again For Violating Disclosure Norms

Ola Electric's Bhavish Aggarwal has popped up on the Security and Exchange Board of India (SEBI) radar. This time, the market regulators warned the company's CEO for being too enthusiastic about its plans. The matter under contention concerns a particular tweet Aggarwal shared on December 2. The post on X talked about how the company would be expanding from 800 stores to 4000 stores before it was even informed to the stock exchanges.

Market regulators SEBI points out that such disclosures, especially ones about corporate expansions, must be made to the stock exchanges within 12 hours of the occurrence or event. This is followed so that all investors are informed promptly and well beforehand. "By failing to disseminate the information on the stock exchanges and instead announcing it on a social media platform, you have failed to provide equal and timely access to information for all investors," SEBI noted in the letter sent to the Bengaluru-based EV maker. The letter also stated that this warning will not impact Ola Electric's financial operations and other activities. 

Ola is no stranger to controversies and was embroiled in them throughout 2024. From hiring bouncers to safeguard its service centres to getting in an online fight with comedian Kunal Kamra and dissatisfied customers lighting up Ola showrooms, the company has experienced the other end of the stick like no other OEM before. To make matters worse, these issues also took a toll on its sales performance, wherein the company gradually lost its market share to end 2024 below Bajaj and TVS. 

In 2025, Ola will have a huge mountain to climb. New product launches, like the Roadster motorcycles and the Ola S1 Z and Gig scooters, will keep matters going for the brand. But getting customers' trust back will not be an easy walk in the park.