Gensol Engineering Faces Sebi Crackdown

Gensol Engineering's shares plunged after Sebi barred the company and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to fund diversion and governance lapses. Sebi's interim order highlights fraudulent fund diversion by the promoters and the issuance of forged conduct letters.

Securities markets regulator Sebi has taken stringent action against Gensol Engineering, leading to a 5% drop in the company's share value. This follows Sebi's decision to bar the firm and its promoters, Anmol and Puneet Singh Jaggi, from the securities markets over fund diversion allegations.

The stock's value plummeted to its lowest permissible trading limit on both BSE and NSE, reflecting investor concerns. In addition to the market ban, Sebi has prohibited the Jaggi brothers from holding directorial positions within Gensol pending further orders.

The findings come after a complaint about manipulation and fund diversion prompted Sebi to investigate the company. Its 29-page interim order reveals the depth of fund mis-utilization and attempts to mislead regulatory bodies through forged documents.

(With inputs from agencies.)