Gensol Engineering Faces Forensic Audit Amid SEBI Crackdown

Gensol Engineering commits to cooperate with SEBI's forensic audit following allegations of fund diversion and governance lapses. Promoters Anmol and Puneet Singh Jaggi have stepped down from directorial roles as SEBI examines potential financial misconduct within the company, delaying a planned stock split.

Gensol Engineering has pledged full cooperation with a forensic audit ordered by the Securities and Exchange Board of India (SEBI) amid allegations of fund diversion and governance lapses.

In an exchange filing, the company confirmed adherence to SEBI's interim directives, appointing a forensic auditor to scrutinize its financial records and associated entities. Promoters Anmol Singh Jaggi and Puneet Singh Jaggi have been restricted from holding any directorial or key managerial roles at Gensol, following SEBI's directive.

The capital markets regulator also halted Gensol's planned stock split due to concerns over share price manipulation and financial misappropriations reported in a complaint received in June 2024. The Jaggi brothers allegedly used corporate funds for personal luxury expenses, sparking SEBI's stringent intervention.

(With inputs from agencies.)