Market Regulator Takes Action Against Gensol Promoters

In a significant move, the Securities and Exchange Board of India (Sebi) has imposed a ban on Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of Gensol Engineering, from participating in the securities markets. This decision comes in light of findings related to fund misappropriation and governance lapses.

Details of the Sebi Investigation

The regulator's investigation was triggered by complaints in June 2024, alleging share price manipulation and diversion of funds from Gensol. A 29-page interim order by Sebi's whole time member, Ashwani Bhatia, highlighted fraudulent activities, including the misuse of company funds by its promoters for personal gains, such as purchasing a luxury flat in Delhi under the guise of business expenses.

Immediate Consequences and Ongoing Scrutiny

Sebi has also mandated the suspension of Gensol's recent stock split announcement and plans to appoint a forensic auditor to examine the company's accounts and those of its associated entities. This interim order underscores the seriousness of the allegations, with a detailed investigation still underway.