Market regulator Sebi has warned Ola Electric Mobility for violating listing norms by sharing store expansion plans on social media before informing stock exchanges, according to a regulatory filing by the company.
Photograph: Kind courtesy officialetergo/Facebook.com
In a letter to the company by Sebi, shared on BSE by Ola Electric Mobility, the market regulator took exception to the dissemination of information regarding plans for a four-fold expansion of the company-owned store network by December 20, 2024.
“It is observed that whereas the aforesaid information was disseminated on the stock exchanges by you at 1:36 PM (BSE) and 1:41 PM (NSE) on December 2, 2024, it was announced beforehand on X (formerly Twitter) at 9:58 AM on December 2, 2024, by Bhavish Aggarwal, your promoter and Chairman-cum-Managing Director,” the letter said.
Stressing that it violated listing norms, Sebi said, “The above violations have been viewed very seriously.
“You are hereby warned and advised to be careful in the future and to improve your compliance standards to avoid the recurrence of such instances, failing which appropriate enforcement action may be initiated in accordance with the provisions of the Securities and Exchange Board of India Act, 1992, and the Rules and Regulations framed thereunder.”
It also asked the company “to take corrective steps, place this communication and the corrective steps taken before your Board of Directors and disseminate a copy of this communication on the stock exchanges that you are listed on”.
On December 2, the company said it planned a four-fold expansion of its company-owned store network to 4,000 by December 20, 2024, with over 3,200 new stores set to open to add to its then-existing 800 stores.
In a separate filing, Ola Electric Mobility said the Karnataka high court has granted an extension of six weeks for the company to submit the response in respect of seeking additional documents and information from the Central Consumer Protection Authority (CCPA).
Last month, the CCPA sought additional documents and information from Ola Electric with regard to the show cause notice issued in October related to 10,644 complaints.
On October 22, the company stated that out of 10,644 complaints received from CCPA, it has resolved 99.1 per cent of the complaints.
Earlier on October 7, the CCPA issued a notice to the company for “alleged violation of consumer rights, misleading advertisement and unfair trade practices”.
