Gensol Eng tanks 5%; hits lower circuit limit as Sebi bans firm, promoters from securities market

New Delhi: Shares of Gensol Engineering tumbled 5 per cent to hit the lower circuit limit on Wednesday after markets regulator Sebi barred the firm and its promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi — from securities markets till further orders in a fund diversion and governance lapses case.

The stock dropped 4.99 per cent to Rs 123.65 -- the lower circuit limit -- on the BSE.

At the NSE, shares of the firm tanked 5 per cent to Rs 122.68 -- the lowest trading permissible limit for the day.

The regulator has also debarred Anmol and Puneet Singh Jaggi from holding the position of a director or key managerial personnel in Gensol until further orders.

Further, the markets watchdog directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it.

The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.

In a 29-page interim order, Sebi said on Tuesday, "The prima facie findings have shown mis-utilisation and diversion of funds of the company (GEL) in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds".

"The company has attempted to mislead Sebi, the CRAs (credit rating agencies), the lenders and the investors by submitting forged conduct letters purportedly issued by its lenders," the regulator said.