Ola Electric Seeks Settlement With SEBI In Misleading Disclosure Probe: Report

EV maker Ola Electric and its founder Bhavish Aggarwal have reportedly approached the markets regulator SEBI to settle a probe pertaining to alleged misleading disclosures made by the company around its sales, deliveries and service network expansion that may have inflated the company’s stock price.

According to a report by ET, the company filed a settlement application on April 23, less than two weeks after receiving a show-cause notice (SCN) from the regulator. With the application, the company seeks to resolve the matter without admitting or denying the allegations.

The E2W maker is said to have held several discussions with SEBI officials since receiving the SCN. During these meetings, the company maintained that it did not intend to mislead investors through its disclosures on sales and vehicle registration figures.

The case stems from disclosures made by Ola Electric between its stock market debut in August 2024 and May 2025. SEBI has alleged violations of rules governing fair market practices and disclosure obligations by listed companies.

Queries sent by Inc42 to Ola Electric remained unanswered till the time of publishing. 

Among the issues under scrutiny are Ola Electric’s claims about a jump in its sales alongside expansion of its service network. To note, the company said it had opened more than 3,200 stores co-located with service centres back in December 2024.

SEBI later alleged that company records showed only 452 such outlets were operational as of February 19, 2025.

The regulator has also questioned a February 2025 disclosure in which Ola Electric said it had sold more than 25,000 E2Ws in the month, holding more than 28% of the entire E2W market.

Separately, SEBI has alleged that Ola Electric did not sufficiently disclose delays and pending approvals related to its Roadster motorcycle rollout, while continuing to indicate that deliveries began by March 2025.

This is one of the many regulatory hurdles that Ola Electric landed in since becoming a listed entity. To note, the company has also been under the radar of the CCPA, MHI, state police forces, among others, over the past few years.

However, the settlement bid with the SEBI comes at a time when Ola Electric is seemingly looking to turn a new leaf. 

The company has just raised ₹780 Cr via a qualified institutional placement (QIP) earlier this month. Investors like Goldman Sachs, Motilal Oswal, Mirae Asset Management, JM Financial, Societe Generale, among others, doubled down on the EV major with the round.

The proceeds will help Ola Electric shed some of its indebtedness, bolster its R&D and fuel its electric cell manufacturing unit, the Ola Electric Gigafactory further.

On the financial front, Ola Electric managed to narrow its Q4 FY26 consolidated net loss by 43% YoY to ₹500 Cr. However, its top line declined 57% to ₹265 Cr amid a sharp drop in electric two-wheeler deliveries.

Shares of Ola Electric gained nearly 3% during intraday trade today, touching a high of ₹44.17 on the BSE.

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