Ola Electric Gets Warning from SEBI over Disclosure Violations, Share Price declines

Ola Electric, one of the big electric two-wheeler companies, has been warned by the markets regulator for violating the rules related to disclosure. The warning comes as the company’s chief, Bhavish Aggarwal, announced important information on social media before filing it with the stock exchange.

Ola Electric has said that it has received an email related to administrative warning from the Securities and Exchange Board of India (SEBI). However, the company has said that this has not had any impact on its financial, operational or other activities. There has been a big fall in the share price of Ola Electric after it received a warning from SEBI.

Earlier it had faced a big setback from the Karnataka High Court. The High Court has refused to dismiss a notice issued by the Central Consumer Protection Authority (CCPA). This notice was given as part of the investigation against the company. In this, additional documents were sought after more than 10,000 complaints from customers regarding Ola Electric’s electric scooters. Justice R Devdas of Karnataka High Court said that this notice has been issued by a competent investigating officer and Ola Electric will have to provide the sought documents. The CCPA had conducted a preliminary investigation into a large number of complaints against Ola Electric. In this, violations related to violation of customers’ rights, misleading advertising and deficiencies in service were found. After this the CCPA had directed its Director General of Investigation to investigate it.

The company had argued that the officers issuing the notice were not authorized under the Consumer Protection Act. The company had said that the officer who issued the notice did not hold the post of Director or Additional Director. On this, the High Court clarified that the Director General has authorized an officer of the rank of Senior Director to conduct the investigation. Bajaj Auto has overtaken Ola Electric to gain the highest share in the electric two-wheeler market. Bajaj Auto’s share in the electric two-wheelers segment has increased to about 25 percent in December. This is an increase of about three percent compared to the previous month.