Ola Electric sought a Sebi settlement over disclosure-related proceedings.
Sebi scrutinised service expansion, sales claims and Roadster timelines.
Ola Electric shares gained nearly 3% despite regulatory concerns.
Shares of Ola Electric Mobility gained nearly 3% on Wednesday after reports emerged that the company and its founder-chairman Bhavish Aggarwal had approached the Securities and Exchange Board of India (Sebi) to settle regulatory proceedings related to alleged misleading disclosures made to investors.
The stock rose as much as 3% to ₹44.21 apiece on the NSE before trading at ₹43.47, up 0.93%, later in the session.
1 June 2026
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According to reports, Ola Electric filed a settlement application with Sebi on April 23, 2026, seeking to resolve the matter without admission or denial of facts and legal conclusions. The application comes after the market regulator issued a show-cause notice in April over alleged discrepancies in disclosures related to the company's service network expansion, sales performance and electric motorcycle rollout timelines.
The company has reportedly submitted detailed explanations to Sebi but is pursuing an amicable settlement to avoid prolonged legal proceedings. Sebi's investigation covers disclosures made by Ola Electric between its stock market debut in August 2024 and May 2025. The regulator has alleged violations of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations and the Listing Obligations and Disclosure Requirements (LODR) Regulations.
According to an Economic Times report, Ola Electric has held three rounds of discussions with Sebi officials following the issuance of the show-cause notice.
Service Network, Sales Claims Under Scrutiny
One of Sebi's key allegations relates to Ola Electric's claims regarding the rapid expansion of its sales and service network.
In December 2024, the company announced plans to expand its physical presence to 4,000 locations, including 3,200 new stores co-located with service centres. It later stated that more than 3,200 such stores had become operational.
However, Sebi has reportedly alleged that the actual expansion was significantly lower than what was communicated to investors. Data submitted by the company allegedly showed only 452 co-located service centres as of February 2025, compared with 429 at the time of its IPO, implying that only 23 additional centres had been added.
The regulator has also cited exchange filings and social media posts by the company and Bhavish Aggarwal highlighting the expansion plans. According to the report, Sebi noted that the announcements came at a time when the company was facing criticism over after-sales service issues and regulatory scrutiny.
The regulator has also questioned Ola Electric's February 2025 disclosure that it had sold more than 25,000 electric two-wheelers and held over 28% market share. Sebi has alleged that the figure represented confirmed customer orders rather than completed sales.
According to the notice, of the 25,207 reported orders, only 5,341 vehicles were registered and revenue had been recognised on 2,848 vehicles. Sebi has alleged that the company shifted from reporting registrations to reporting orders without adequately disclosing the change.
The regulator also flagged claims that nearly 90% of orders were fully paid, noting that advance payments accounted for about 68% of total order value and that only 61% of orders had received payments exceeding 90% of the purchase value.
Roadster Delays And Stock Performance
Sebi has also raised concerns over the rollout of Ola Electric's Roadster motorcycle programme.
According to the regulator, the company failed to adequately disclose delays and pending prototype approvals despite earlier indicating that deliveries would begin by March 2025. Sebi has further alleged that Ola Electric announced the commencement of Roadster X deliveries in May 2025 even though no deliveries took place during that month. Bhavish Aggarwal later acknowledged that deliveries began only in June.
Despite the regulatory overhang, Ola Electric shares have recovered from their March lows. The stock debuted on the exchanges in August 2024 at ₹76 per share but later fell to an all-time low of ₹22.25 in March 2026 amid concerns around market share, service quality and profitability.
Since then, the stock has rebounded sharply and is up around 15% so far in 2026. In June alone, the shares have gained more than 9%. However, the stock continues to trade well below its IPO price, reflecting the challenges facing the electric two-wheeler maker as competition intensifies and regulatory scrutiny remains in focus.
