India’s market regulator has warned Ola Electric not to share company-related information on social media before disclosing it to investors, raising a host of questions for the electric two-wheeler maker.
The Securities and Exchange Board of India (SEBI) letter disclosed by Ola Electric late on Tuesday said the company failed to provide investors with “equal and timely access” to information about its store expansion plans.
Last month, Ola Electric founder Bhavish Aggarwal posted on social media platform X and shared the news of the new store opening with investors through the stock exchanges about four hours later.
Listed companies must first disclose any information to investors through exchange filings, and the disclosure time must not exceed 12 hours after the event occurs.
“We take the above violation very seriously. You are hereby issued a warning,” SEBI said in the letter.
Ola Electric, which went public in August last year, opened 3,200 new stores and service centers last month to expand its reach and address growing complaints about its service standards.
SEBI’s letter is the latest such regulatory scrutiny of the company following a government agency probe into its service standards.
The issues have cast a shadow over Ola’s stellar listing, which saw the company’s share price double in less than a week.
It has also lost market share to rivals TVS Motor and Bajaj Auto’s ‘Chetak’ electric scooter in recent months.
Its shares are currently down about 1.8% at 77.74 rupees, nearly 50% below the all-time high set in August last year. Earlier in the day, their shares were down five percent.
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