SEBI Probe Triggers Massive Crash in BluSmart Parent Company Shares
Gensol Engineering Limited, the parent company of electric vehicle firm BluSmart, has seen a massive crash in its stock price. From a 52-week high of Rs 1,124.90, the stock dropped sharply to Rs 116.54, falling nearly 90%. This sharp decline happened after the Securities and Exchange Board of India (SEBI) uncovered a serious financial fraud involving the company.
SEBI’s investigation revealed that the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, were involved in major financial irregularities. The regulator has now banned both of them from holding leadership positions in any listed company or accessing the securities market. SEBI’s order stated that funds were misused and moved from the company’s accounts to personal and family accounts.
According to the findings, Anmol Singh Jaggi transferred Rs 6.2 crore to his mother and Rs 2.98 crore to his wife. He also used the company’s funds for personal luxury purchases, such as spending Rs 26 lakh on a golf set, Rs 17 lakh on Titan shopping, and over Rs 10 lakh on spa services.
Following the scandal, Arun Menon, one of Gensol’s independent directors, resigned from his post with immediate effect. In his resignation letter addressed to Anmol Singh Jaggi, he distanced himself from the wrongdoing.
This situation has shaken investor confidence, leading to a series of sell-offs in the stock market. Gensol shares have been locked in the lower circuit, meaning trading in them is restricted due to the rapid fall in price.
The case highlights the importance of corporate transparency and strong regulatory oversight. SEBI’s actions show that financial mismanagement and fraud will not be taken lightly. The incident has also sparked discussions about better governance and stricter rules to protect investor interests in India’s growing stock market.
