SEBI Warns Ola CEO Bhavish Aggarwal Over Disclosure Norm Breach

The Securities and Exchange Board of India (SEBI) has issued an administrative warning to Ola Electric CEO Bhavish Aggarwal for violating disclosure norms. The warning followed Aggarwal's decision to reveal business expansion plans on social media platform X before disclosing the same information on stock exchanges.  

In an email sent on Tuesday, SEBI noted that the EV maker failed to provide equal, timely, and cost-efficient access to information for all investors. The regulator advised the company to exercise caution in the future and adhere strictly to compliance standards.  

“It is observed that the information was disseminated on the stock exchanges by you at 1:36 PM (BSE) and 1:41 PM (NSE) on December 2, 2024, but it was announced beforehand on X at 9:58 on December 2, 2024, by Bhavish Aggarwal, your promoter and CMD,” SEBI stated. “By failing to first disseminate the information on the stock exchanges and instead announcing it on a social media platform, you have failed to provide equal and timely access to information for all investors.”  

The disclosure in question involved Ola Electric's plans to expand its distribution network to 4,000 stores to accelerate growth and EV adoption.  

Aggarwal’s actions were found to breach multiple provisions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including rules 4 (1) (d), 4 (1) (f), 4 (1) (h), and 30 (6).  

Past Regulatory Scrutiny  

This is not the first time Ola Electric has faced regulatory challenges. In October 2024, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to the company over alleged consumer rights violations, misleading advertisements, and unfair trade practices.  

The Karnataka High Court recently granted the company an extension of six weeks to submit additional documents and information sought by the CCPA, according to media reports.