SEBI Bars Gensol Engineering Founders from Securities Markets
The Securities and Exchange Board of India (SEBI) has barred Gensol Engineering founder-promoters Anmol Singh Jaggi and Puneet Jaggi from the securities markets due to a funds diversion case. The brothers have also been banned from holding key posts in the company. SEBI is investigating fund diversion and governance lapses at Gensol Engineering.
The probe began in June 2024 following a complaint alleging share price manipulation and fund diversion for personal expenses. Gensol Engineering took a loan of ₹71.41 crore from IREDA, transferring ₹26 crore to Go-Auto, a car dealership. Funds were later sent to Capbridge Ventures, owned by Anmol Singh Jaggi. Lavish spendings included golf gear, personal travel, and investments in various companies.
SEBI’s interim order revealed misuse and diversion of company funds by the Jaggi brothers, who were beneficiaries of the diverted funds. Gensol Engineering was accused of misleading regulators, lenders, and investors. The company operated as if it were a private firm, routing funds for personal use. Retail investors faced losses as Gensol Engineering shares plummeted by 80%.
SEBI halted the company’s stock split to protect investors from further losses. Gensol Engineering stock fell by 5% following the regulator’s action. Analysts advise caution when investing in small-cap and mid-cap stocks due to corporate governance risks. Investors are urged to seek advice from experts before making investment decisions.
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