SEBI has issued the warning due to violation of the disclosure norms.
- On December 2, 2024 morning at 9:58 am, Bhavish Aggarwal, the CMD, had shared details of Ola Electric’s plans for a four-fold expansion on social media platform X.
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Bhavish Aggarwal wrote, “Taking the Electric revolution to the next level this month. Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible.”
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- Later in the day, the information was disseminated on the stock exchanges at 1:36 PM (BSE) and 1:41 PM (NSE).
- SEBI’s observation of violation is that the sensitive information was 1st disclosed on social media and not on the exchanges and hence the Company failed to take into consideration the interest of all its stakeholders and follow its obligations in letter and spirit.
- The regulator’s rules state that “the listed entity shall first disclose to the stock exchange(s) all events or information which are material in terms of the provisions of this regulation as soon as reasonably possible and in any case not later than… twelve hours from the occurrence of the event or information, in case the event or information is emanating from within the listed entity.”
Above may seem too small a violation to a layman.
However, i believe it’s a step in the right direction. Many new age businesses are social media savvy and many a time over communicative impacting the trading price.
Regulator is right in trying to put a leash on them.