Amid SEBI investigation, Gensol's independent director resigns!
Another big corporate fraud has come to light in the world of stock market. Gensol Engineering and its owners have been accused of manipulating the company's money. Market regulator SEBI found in its investigation that the company's owners have used the loan money to buy flats for themselves, expensive goods and even transferred money to their wife and mother's accounts.
After this news, there has been a stampede in the shares of Gensol Engineering. Meanwhile, Arun menon, independent director of Gensol Engineering, a troubled company that has come under the scrutiny of market regulator SEBI due to misuse of funds and lapses in operations, has informed about his resignation with immediate effect. In his resignation sent to Anmol Singh Jaggi, one of the promoters of the company, menon wrote that there are growing concerns about GEL's books and GEL's ability to maintain stability at such a high cost of debt to finance the capital expenditure of other businesses.
menon has resigned in the backdrop of the Securities and Exchange Board of india (SEBI) banning Gensol Engineering and its promoters Anmol Singh Jaggi and Punit Singh Jaggi from the securities market till further orders due to money misappropriation and operational lapses. The regulator had also barred Anmol and Punit Singh Jaggi from holding director or key managerial positions in Gensol till further orders.
Apart from this, the market regulator also directed Gensol Engineering Limited (GEL) to stop the share split announced by it. The company's stock has fallen by about 90 percent from its peak. Still about one lakh small investors are stuck in this stock. What is the whole matter, let's know. SEBI has removed Gensol Engineering promoters Anmol Singh Jaggi and Punit Singh Jaggi from the post of director of the company. Along with this, both the brothers have also been banned from the stock market. SEBI said that both these brothers cannot hold any important position in the management team of Gensol Engineering.
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