The Securities and Exchange Board of India has warned Ola Electric against sharing company related news on social media prior to disclosing it to investors, adding to the woes of the electric two wheeler maker.
- Information was shared first on social media
- Ola Electric went public last August
- Has lately been facing the heat regarding service issues
The letter from the market regulator, disclosed by Ola Electric, stated that the company had failed to provide "equal and timely access" to investors regarding a planned store expansion, Reuters noted.
On December 2, 2024, the company's founder Bhavish Aggarwal shared news about new store openings on social media, and to investors, four hours after that, via stock exchanges. Publicly listed firms are mandated to disclose any information first to investors via exchange filings, and not more than 12 hours after the event takes place.
Ola Electric, which went public in August last year, opened 3200 new stores and service centres the previous month to expand reach and address increasing complaints pertaining to service standards.
"The above violations have been viewed very seriously. You are hereby warned," SEBI said in its letter. This letter marks the latest regulatory scrutiny on the electric two-wheeler maker, following a government agency's investigation into its service standards, the newswire noted.