Sebi or Securities and Exchange Board of India has issued a warning to Ola Electric Mobility. The apex market regulator issued an administrative warning to Ola. Sebi has issued these warnings EV player as an administrative warning.
Warning Reason
The warnings issued by Sebi over certain violations of disclosure norms. Following the warnings shares of Ola Electric Mobility fell to Rs 77 apiece.
Bhavish Aggarwal who is the Chairman and Managing Director of Ola Electric Mobility had tweeted something. The director had had shared information of Ola Electric’s plans for a four-fold expansion. The announcement were made on social media platform X, formerly known as Twitter.
Sebi- Rules And Regulations
However as per the rules and regualtions laid by Sebi this announcement is not correct. To be more precise it’s prohibited under the Listing Obligation and Disclosure Requirements (LODR) regulations.
The post was shared on X at9:58 AM on December 2, 2024. However, SEBI noted that the information was disseminated on the stock exchanges by the firm at 1:36 PM (BSE) and 1:41 PM (NSE) on December 2, 2024.
In the Warning issued by the market regulator claims that the company failed to inform the stock exchanges and investors in a timely manner. The rules mention that all expansion plans need to be informed to stock exchanges first.
Sebi says that the violations have been viewed seriously. Additionally it has suggested the company to be careful in future to improve the compliance standards. More importantly failing these warnings will lead to enforcement action being initiated.
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