Gensol Engineering confirms Sebi's interim order, says 'working diligently to maintain operational stability'

In an exchange filing, Gensol Engineering said that "the Company remains focused on its business and committed to protecting the interests of all its stakeholders."

Gensol Engineering confirmed the market watchdog Sebi’s interim order against the company and its promoter in a statement on Wednesday. While confirming the clampdown, the company also said that it is committed to protect the interests of all the stakeholders.

Earlier in the day, Moneycontrol had reported that the investigation against Gensol promoters is set to escalate. This also means that there is an increased possibility of other government agencies to join the probe.

Acknowledging that the Sebi order and media coverage “may have adversely impacted investor sentiment, which in turn has been reflected in recent stock price volatility,” the company added that it “remains focused on our business objectives and are working diligently to maintain operational stability and performance.”

The statement came a day after the market regulator issued an interim order. Gensol Engineering allegedly diverted funds and misused loans. As per Sebi, nearly Rs 97 crore were diverted to promoter-linked entities. Additionally, Rs 37.5 crore worth of loan, which was from a subsidiary was siphoned off to the account of Gensol promoter Anmol Singh Jaggi.

"The company is dedicated to upholding the highest standards of corporate governance and transparency," Gensol Engineering said in the Wednesday's exchange filing.

After the interim order, the company reportedly took several measures. "In compliance with SEBI’s directions in the interim order, Anmol Singh Jaggi and Puneet Singh Jaggi (promoters of the Company) have 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, effective immediately," the company said in the statement.