Following Sebi’s warning over disclosure violations, Ola Electric Mobility shares fell 3.8% to their day's low of INR 76.12 on the BSE on Wednesday.The Securities and Exchange Board of India (Sebi) has issued a warning to Ola Electric Mobility Limited for breaching disclosure regulations by announcing its expansion plans on social media before informing stock exchanges. The regulator added that the violations are viewed very seriously and enforcement action may be initiated against Ola Electric if similar incidents occur again.
According to the Sebi LODR (Listing Obligations and Disclosure Requirements) regulations, the listed entity should “first disclose to the stock exchange(s) all events or information that are material in terms of the provisions of this regulation as soon as reasonably possible.”
The market regulator found the company in violation of the above requirements. The violations cited were of regulations 4 (1) (d), 4 (1) (f), 4 (1) (h), and 30 (6) of the Sebi Disclosure Regulations, 2015.
The announcement was made by the firm's chief executive officer, Bhavish Aggarwal, and it was regarding the plans for a four-fold expansion of the company’s store network.
In the letter, Sebi said that the “violations have been viewed very seriously.” The regulator has warned the company to be careful in the future and to avoid recurrence, and failure to comply could lead to “appropriate enforcement action.”
Following Sebi’s warning over disclosure violations, Ola Electric Mobility shares fell 3.8% to their day's low of INR 76.12 on the BSE on Wednesday.
