Gensol Engineering Faces SEBI Crackdown Amidst Governance Allegations

Gensol Engineering's shares plummeted by 5% following SEBI's ban on the company and its promoters over allegations of fund diversion and governance lapses. SEBI has also halted the company's stock split and instructed a forensic audit. An independent director has resigned amidst the turmoil.

In a significant development, shares of Gensol Engineering plummeted by 5% on Thursday, hitting the lower circuit limit, following the Securities and Exchange Board of India's (SEBI) decisive action against the company.

The regulator has accused Gensol and its promoters, Anmol and Puneet Singh Jaggi, of fund diversion and governance lapses. As a result, SEBI has barred them from the securities market. This interim order comes after an investigation sparked by a June 2024 complaint about share price manipulation and fund diversion.

With its stock price already down 89.56% from a 52-week high, Gensol's shares continued to tumble. The company, involved in solar consulting and electric vehicle leasing, has vowed to cooperate with SEBI's forensic audit, even as its independent director, Arun Menon, abruptly resigned.

(With inputs from agencies.)