Sebi's Tight Grip: Gensol's Market Woes Unveiled

Capital markets regulator Sebi has imposed restrictions on Gensol Engineering and its promoters due to fund diversion and governance lapses. The Jaggi brothers are barred from holding key positions in the company and a planned stock split is on hold amid a probe into fraudulent activities and misleading conduct.

The Securities and Exchange Board of India (Sebi) has taken stern action against Gensol Engineering and its top executives following allegations of fund misappropriation and governance failures. On Tuesday, Sebi barred the company and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in securities markets until further notice.

The Jaggi brothers have also been prohibited from holding directorial or managerial roles within Gensol Engineering, as the regulator investigates accusations of fraudulent fund diversion and manipulation of share prices. In addition, Sebi has instructed Gensol to halt its recently announced stock split while the inquiry continues.

Sebi's findings claim significant breaches in corporate governance, with company funds reportedly used improperly and routed to related entities. The regulator has ordered Gensol to appoint a forensic auditor to scrutinize its financial operations, highlighting Sebi's commitment to maintaining market integrity.

(With inputs from agencies.)