Ola Electric SEBI probe centered on alleged stock inflation: ET
Ola Electric is currently under investigation by the Securities and Exchange Board of India (SEBI) over allegations of stock price manipulation and insider trading. The probe, which began in October 2024, focuses on two suspected instances of insider trading between October and December 2024. The company has also faced scrutiny for its February 2025 sales disclosures, where a significant gap emerged between its reported 25,000 scooter "sales" and the 8,600 registrations recorded in VAHAN database. This discrepancy has raised concerns about transparency and the accuracy of public disclosures.
In addition to the sales reporting issue, SEBI is examining whether Ola Electric misled investors through selective or opaque disclosures. A recent example includes the company’s “Muhurat Mohotsav” sale, where it claimed rapid inventory depletion without disclosing the actual size of the inventory. Critics argue that such disclosures, while technically compliant with regulations, may have artificially inflated investor sentiment and stock price without reflecting genuine business performance.
Ola Electric’s Q1 FY26 results showed a narrowed net loss of ₹428 crore, down from ₹870 crore in the previous quarter, but still higher than ₹347 crore a year earlier. Despite this, the stock has declined over 46% in 2025, reflecting ongoing investor skepticism. The company has also faced operational challenges, including delayed registrations, customer service complaints, and internal control weaknesses highlighted in its FY25 audit.
Regulatory bodies, including the Ministry of Heavy Industries and the Ministry of Road Transport and Highways, have directed investigations into Ola Electric’s sales reporting and operational practices. The Automotive Research Association of India (ARAI) has been tasked with examining consumer complaints and verifying the accuracy of sales figures. The outcome of these reviews could influence future disclosures and investor confidence.
As the probe continues, investors are closely watching how Ola Electric addresses these challenges and whether it can restore transparency and operational discipline. The case highlights broader concerns about corporate governance and the need for stricter regulatory oversight in the Indian capital markets.
