The shares of Gensol Engineering opened tanking 5% on Wednesday after market regulator SEBI barred the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from participating in security markets with immediate effect over allegations of financial misconduct. The market watchdog has also directed to put on home the stock split, which was announced recently by the company.

The Gensol Engineering Shares opened at Rs 122.68, tanking 5% against the previous session's closing price of Rs 129.14 per share on NSE. With the development, the script hit a fresh 52-week low with both NSE and BSE. The stock has been declining for the past few months, it has corrected over 50% in a month, fell over 86% in a year and hit multiple lower circuit in the past 7 trading sessions.

Jaggi Brothers Were Removed From Leadership Roles

The market regulator has barred both the promoters (Jaggi Brothers) from holding any key management positions in the company, effectively removing them from their leadership roles. In addition, the market watchdog has suspended the stock split announced by Gensol, further affecting investor sentiment.

According to media reports, the probe focuses on about Rs 975 crore of loans raised by Gensol for the purchase of 6,400 electric vehicles. However, only 4,704 electric vehicles were procured at Rs 567.73 crore, leaving over Rs 200 crore unaccounted for. These discrepancies raise serious concerns about the company’s financial practices and integrity.

In response to the findings, SEBI has ordered the appointment of a forensic auditor to conduct a thorough examination of Gensol’s books of accounts and related party accounts. The move aims to uncover any further irregularities and ensure transparency in the company’s financial dealings.

This is a developing story...