Bhavish Aggarwal-led Ola Electric has dismissed media reports claiming that the Securities and Exchange Board of India (Sebi) started probe on the electric vehicle start-up over alleged insider trading. Calling it “factually inaccurate”, the EV maker gave clarification statement in an exchange filing on Friday.
Ola Refutes 'Insider Trading' Claims, Bhavish Aggarwal Calls Sebi Probe Report 'Inaccurate'
Ola Electric has denied claims that it is being investigated by Sebi for insider trading. The company said reports alleging trades based on confidential information by a top executive were 'factually incorrect'
Ola Electric founder Bhavish Aggarwal Photo: Selvaprakash Lakshmanan
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“We would like to bring to your attention that the story titled ‘Ola Electric Likely In SEBI Crosshairs Over Alleged Insider Trading’ contains factual inaccuracies that could potentially harm the reputation of Ola Electric Mobility Limited,” the filing read.
The markets regulator is reportedly investigating Ola Electric for two suspected instances of insider trading that allegedly occurred between October and December 2024, according to a report published by NDTV Profit.
The report also claimed that Claudio Zizzo, vice president of the company’s electrical and electronics division, executed at least two trades based on confidential and material information during that time.
What Went Wrong?
In November 2024, Aggarwal announced the launch of the Ola S1 Z and the Gig series of electric scooters on X (formerly Twitter) at 2:46 pm stating: “Say hello to Ola S1 Z & Gig range, starting at just Rs 39K!” The NDTV report stated that Zizzo had purchased 62,205 shares at Rs 87.97 apiece on the same day—hours before the company formally disclosed the product launch to the stock exchanges after market hours.
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The report further alleged that Zizzo offloaded all those shares over the next three trading days, during which the stock surged and hit the upper circuit on November 27.
Ola Electric has denied any wrongdoing, stating that the trades were “routine transactions” related to the exercise of employee stock ownership plans (ESOPs) and did not involve open market purchases.
Notably, Sebi had earlier issued an administrative warning to the company in January after Aggarwal disclosed key expansion plans on social media before making a formal filing with the stock exchanges—another instance flagged as a disclosure lapse.
Currently, the EV maker is under scrutiny for various reasons like sales data discrepancy, compliance violations, absence of trade certificates, etc.
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