Gensol Engineering Scandal: Stocks Plummet Amid Financial Misconduct Allegations

Gensol Engineering's stock has sharply declined as SEBI bars key figures from the securities market amid financial misconduct allegations. The company's market price deteriorated following accusations of misappropriating funds. Gensol's future hangs in balance as regulatory scrutiny intensifies with potential repercussions from the Corporate Affairs Ministry.

The shares of Gensol Engineering experienced a significant slump, dropping by 5% to record another lower circuit limit due to the ongoing crisis within the company. Investors are rapidly withdrawing amid concerns over corporate governance and financial misconduct allegations targeting the firm.

In an interim order last week, the Securities and Exchange Board of India (SEBI) prohibited Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities markets. This drastic move stems from allegations that they siphoned off loan funds for personal use, deepening the crisis surrounding the publicly listed company.

The ramifications for Gensol are severe, as the stock hit its 52-week low on both BSE and NSE, nosediving to a decline of over 90% from its annual high. Amid intensifying regulatory scrutiny, the Corporate Affairs Ministry has announced its commitment to take necessary measures following SEBI's evaluation of the situation.

(With inputs from agencies.)