India’s markets regulator has warned Ola Electrical towards sharing company-related info on social media earlier than disclosing it to buyers, including to a slew of issues for the electrical two-wheeler maker.
The letter from the Securities and Change Board of India (SEBI), disclosed by Ola Electrical late on Tuesday, mentioned that the corporate had failed present “equal and well timed entry” to its buyers of details about a deliberate retailer growth.
Final month, Ola Electrical’s founder, Bhavish Aggarwal, shared information about new retailer openings in a submit on social media platform X and to buyers about 4 hours later by way of the inventory exchanges.
Publicly-listed firms are required to reveal any info first to buyers by way of change filings and no more than 12 hours after the occasion takes place.
“The above violations have been considered very critically. You might be hereby warned,” SEBI mentioned in its letter.
Ola Electrical, which went public in August final 12 months, opened 3,200 new shops and repair centres final month to broaden its attain and deal with rising complaints on its service requirements.
The letter from SEBI is the most recent such regulatory scrutiny on the corporate following a authorities company’s investigation into its service requirements.
The problems have solid a shadow on Ola’s stellar itemizing, which noticed its shares double in worth in lower than per week.
It has additionally misplaced market share to rivals TVS Motor and Bajaj Auto’s ‘Chetak’ e-scooters in current months.
Its shares are at the moment down about 1.eight % at 77.74 rupees, almost 50 % beneath their all-time excessive hit in August final 12 months. That they had fallen as a lot as 5 % earlier within the day.
© Thomson Reuters 2025
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
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