Gensol Engineering Faces SEBI Heat: Stocks Tumble Amid Governance Scandal

Gensol Engineering shares fell by 5% as SEBI barred the firm and its promoters from securities markets due to fund diversion and governance breaches. The decision came after a complaint was received in June 2024. SEBI found evidence of fraudulent fund diversion by promoters Anmol and Puneet Singh Jaggi.

Shares of Gensol Engineering plummeted by 5% on Wednesday, reaching the lower circuit limit after SEBI imposed a ban on the company and its promoters, Anmol and Puneet Singh Jaggi, from participating in securities markets due to allegations of fund diversion and governance lapses.

The stock witnessed a drop of 4.99% to ₹123.65 on the BSE, hitting its lower circuit limit. Similarly, on the NSE, it declined by 5% to ₹122.68, the day's lowest trading permissible limit.

Highlighting the long-term impact of governance failures on market perception, Tarun Singh, MD and Founder of Highbrow Securities, noted that the news would significantly mar the company's valuation and investor confidence. An SEBI interim order detailed prima facie evidence of fraudulent fund diversion and deceitful communication by Gensol with regulatory and financial parties.

(With inputs from agencies.)