New Delhi: India’s market regulator Securities and Exchange Board of India (SEBI) has passed an interim order barring Gensol Engineering Limited and its promoters (also co-founders BluSmart) Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities market and halted Gensol’s proposed stock split. The promoter brothers have now stepped down as the company’s directors following the market regulator’s orders.

As per the interim order, Sebi will appoint an auditor to thoroughly examine the books of the company and its related entities.

In light of the audit to be conducted by Sebi, Gensol Engineering on Wednesday said it will fully cooperate with the process. 

“Gensol will fully cooperate with the forensic audit to be conducted at the behest of Sebi,” it added.

Further, the company asserted that Anmol Singh Jaggi and Puneet Singh Jaggi (promoters of the company) have been restrained from holding the position of a director or a Key Managerial Personnel in Gensol until further orders.

    

They are no longer participating in the management of the company as per Sebi’s instructions. 

It is alleged that Gensol Engineering’s promoters treated the listed company as a proprietary firm, diverting corporate funds to buy a high-end apartment in The Camellias, DLF Gurgaon, splurging on a luxury golf set, paying off credit cards, and transferring money to close relatives.

The SEBI order came after the regulator 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.