Ola Electric denies insider trading allegations, calls report factually inaccurate

Ola Electric on Friday denied media reports suggesting that the company is under investigation by the Securities and Exchange Board of India (SEBI) for alleged insider trading. In a stock exchange filing, the electric vehicle maker clarified that the trades in question were routine transactions related to Employee Stock Ownership Plans (ESOPs), not open market purchases.

The company was responding to an NDTV report that cited unnamed sources claiming SEBI had likely initiated a probe into two instances of insider trading between October and December 2024. The report also suggested that related party transactions at Ola Electric Mobility Ltd could be under regulatory scrutiny.

In its official response, Ola Electric refuted the allegations and said the individual mentioned in the report is an employee of Ola Electric Technologies Private Limited and holds ESOPs of Ola Electric Mobility Limited.

“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 Ltd,” the company stated in its filing.

“To clarify: the trades referred were routine transactions involving shares acquired through exercising these ESOPs and not through open market purchase,” it added.

Ola Electric urged media outlets to update or balance their reporting to avoid misrepresentation and protect the company’s reputation. The Bhavish Aggarwal-led firm did not comment on whether SEBI has officially approached the company regarding any inquiry.

The recent update follows earlier media speculation about the market regulator investigating the accuracy of disclosures made by the pure-play EV company regarding February sales data.

In a statement on Friday, Ola Electric clarified that the individual mentioned in the media article is an employee of Ola Electric Technologies Private Limited and holds ESOPs (Employee Stock Ownership Plans) of Ola Electric Mobility Limited. The company stated that the trades mentioned were routine transactions involving shares acquired through the exercise of these ESOPs, not through open market purchases.

There were also reports last week about an alleged notice from Maharashtra authorities directing the immediate closure of over 100 showrooms in the state. Ola Electric has since stated that it is not aware of any such notice.

The EV maker's shares closed slightly lower at Rs 48.59 each on BSE on Friday.