Ola Electric Mobility: Bhavish Aggarwal-led co under SEBI radar over insider trading, says report

The market regulator SEBI has likely commenced an investigation into the Bhavish Aggarwal-led Ola Electric Mobility Ltd over two counts of alleged insider trading between October and December 2024, NDTV reported today quoting at least three sources. The related party transactions by Ola Electric may also be under SEBI's radar, the report suggested. Ola Electric denied the report, calling it factually inaccurate. 

The fresh report came after a media report earlier suggested that the market regulator was looking into the accuracy of disclosures made by the pure-play EV company regarding February sales data.

Later on Friday Ola Electric clarified that the individual mentioned in the media article is an employee of Ola Electric Technologies Private Limited and holds ESOPs (Employee Stock Ownership Plans) of Ola Electric Mobility Limited. The trades, it said, referred were routine transactions involving shares acquired through exercising these ESOPs and not through open market purchase.

Last week, there were also reports floating around receiving of a notice by Ola from the Maharashtra authorities ordering immediate closure of over a 100 showrooms in Maharashtra. Ola Electric, however, suggested it was not aware of any such notice. 

On Friday, the stock was trading 0.55 per cent lower at Rs 48.45. The benchmark indices Sensex and Nifty, which were up 1 per cent each earlier today, cut gains and were trading flat. 

Ola Electric has been in news ever since VAHAN portal data showed the auto EV major sold 8,600 units in February, with its market share plunging significantly to 11.4 per cent from 25 per cent in January 2025. But Ola Electric in stock exchange filings suggested it sold 25,000 units in February with market share of 28 per cent.

Following this, the company received emails from the Ministry of Heavy Industries and Ministry of Road Transport and Highways of India (MORTH), seeking reasons for why there was a large gap in vehicle registration in February as per VAHAN portal and sales as per the company’s regulatory filing for February. 

Ola Electric also received notices in four states with regard to trade certificates for few of its stores and the company earlier suggested it was in the process of responding to the same.

"Additionally, we have already informed the exchange, via our intimation dated March 21, 2025, regarding the receipt of notices in four states pertaining to trade certificates for certain stores located in those states," Ola said on April 25.

"Ola Electric remains fully committed to compliance and will continue to promptly disclose any material information to the exchanges in accordance with regulatory requirements," it said.