(Bloomberg) -- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here.
Ola Electric Mobility Ltd. was warned by India’s markets regulator against posting company updates on social media before disseminating information to its investors.
The administrative warning from the Securities and Exchange Board of India came after Ola Electric’s founder Bhavish Aggarwal last month took to X to announce a store expansion plan about three hours before letting investors know via the stock exchanges, the company said in a filing on Tuesday. By announcing the launch on social media, the firm has “failed to provide equal and timely access to information for all investors,” Sebi said in its letter, which was shared by the company.
The regulatory admonition is the latest in a series of disappointments for the electric two-wheeler maker and its investors. In recent years, the company has been the target of buyer complaints after a string of vehicle fires, regulatory scrutiny, social media backlash and market share loss.
READ: Ola Electric Adds 3,200 Stores, Seeks to Allay Consumer Woes
In December, the company opened about 3,200 stores in a single day as it sought to script a reputational turnaround and regain investor confidence.
The Bengaluru-based company has violated regulations and has been “advised to be careful in the future and to improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action may be initiated,” said Sebi in the letter.
Ola Electric shares were trading at 75.79 rupees ($0.88) at 9:36 am in Mumbai, down 3% over their previous close. They have nearly halved from their peak levels after a blockbuster listing in August.
©2025 Bloomberg L.P.