Ola Electric Investigated for Alleged Insider Trading

Ola Electric is currently under examination by regulatory authorities, indicating that SEBI might conduct an inquiry into the electric vehicle manufacturer regarding suspected insider trading. Reports indicate that this investigation pertains to unusual trading activities involving the company’s unlisted shares prior to significant internal announcements.

Company’s Response to Allegations

In light of these developments, Ola Electric clarified through a filing with the stock exchange that the transactions in question were standard activities relating to shares obtained via the exercise of employee stock options (ESOPs) rather than purchases on the open market.

Previous Concerns Raised by SEBI

This situation follows a prior warning from SEBI in January 2025, when the regulatory body highlighted Ola Electric for not adhering to disclosure norms. During that period, the company publicly announced a significant retail expansion via social media platforms before notifying the stock exchanges. This led SEBI to caution the firm against selective disclosure and reiterate the importance of compliance with the SEBI (LODR) guidelines.

Discrepancies in Reported Sales Figures

In February 2025, a notable inconsistency arose between Ola Electric’s reported vehicles sales, which reached 25,000 units, and the approximately 8,600 vehicle registrations logged on the government’s VAHAN portal. Ola Electric attributed this discrepancy to ongoing negotiations with its vehicle registration partners.

Market Performance Insights

By April, Ola Electric achieved the second spot in the electric two-wheeler market, with TVS Motor claiming the leading position. However, Ola Electric’s share price has fallen to Rs 48.53, resulting in a reduced market capitalization estimated at Rs 21,405 crore (around $2.5 billion). In the third quarter of FY25, ending December 2024, the company reported a year-on-year decline of 19.4% in operating revenue, decreasing from Rs 1,296 crore to Rs 1,045 crore. Concurrently, the net loss escalated by 50% year-on-year, reaching Rs 564 crore.