Ola electric mobility shares slides down more than 5 per cent on NSE (National Stock Exchange), after market watchdog SEBI (Securities and exchange board of India), issued a warning over violation of regulations of information disclosure.
Ola boss Bhavish Aggarwal made a material announcement on twitter, several hours before the exchange was notified about the developement.
The shares of Ola Electric Mobility went on to touch the day low of Rs 75.16 per share on the exchange after hitting the opening bell at Rs 77.00 per share on the Indian bourses.
Ola shares were trading around Rs 77.34 per share on the Indian exchanges with a slump of 2.30 per cent amounting to a Rs 1.82 per share on the dalal street.
Regulations of disclosure of information
According to LODR Regulation 30(6)(ii), the listed entity must notify the stock exchanges of any events or information that are material under the provisions as soon as reasonably possible and, in any event, no later than twelve hours after the event or information occurs.
In contrast to the fact that company disseminated the aforementioned information on the stock exchanges at 1:36 PM (BSE) and 1:41 PM (NSE) on December 2, 2024, the SEBI letter stated that Bhavish Aggarwal, promoter and Chairman-cum-Managing Director, had previously announced it on X (formerly Twitter) at 9:58 AM on the same day.
In order to prevent a recurrence of such incidents, the market regulator warned and advised the company to improve compliance standards and exercise caution going forward. If this is not done, appropriate enforcement action may be taken in accordance with the provisions of the Securities and Exchange Board of India Act, 1992 and the Rules and Regulations framed thereunder.
