January 8, 2025
New Delhi, India
Ola Shares
Ola Electric Mobility Ltd witnessed a sharp decline in its share prices on Wednesday, January 8, 2025, after receiving a warning letter from the Securities and Exchange Board of India (SEBI) for violating disclosure norms. The company’s stock fell over 5% during early trading before recovering slightly.
SEBI’s Warning:
The market regulator issued the administrative warning on January 7, citing violations of multiple provisions under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The violations pertain to ensuring timely and equal dissemination of critical information to all stakeholders.
The warning was linked to Ola Electric’s announcement about expanding its company-owned store network fourfold by December 20, 2024. While the information was shared on stock exchanges post 1:30 PM on December 2, 2024, it had already been disclosed earlier in the day on “X” (formerly Twitter) by Chairman Bhavish Aggarwal.
SEBI emphasized the seriousness of the breach and advised Ola Electric to improve its compliance standards to prevent similar instances. The regulator warned of potential enforcement actions for future lapses.
Market Reaction:
Ola Electric shares fell as much as 5.05% to a low of ₹75.16 on the NSE before recovering to ₹75.61 by mid-morning. On the BSE, the stock dropped 3.8% to a day’s low of ₹76.12. Trading volumes were substantial, with over 1.45 crore shares exchanged, generating a turnover of ₹110.97 crore.
Company Response:
Ola Electric assured stakeholders that the SEBI warning would not materially impact its financial or operational activities.
Additionally, in a separate development, the Karnataka High Court granted Ola Electric a six-week extension to respond to a Central Consumer Protection Authority (CCPA) request for additional documents and information. The company stated its commitment to meeting the deadline.
While the SEBI warning has drawn attention to compliance issues, Ola Electric’s reassurance about its financial and operational stability may help mitigate long-term investor concerns. However, the incident highlights the importance of adhering to regulatory norms in maintaining market credibility.
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