BluSmart allegations will erode investor trust, warns former BSE chairman S Ravi
By : Sandhya
S Ravi, former chairman of the Bombay Stock Exchange (BSE), voiced significant concern over the current claims against BluSmart, saying that such instances will erode investor trust and degrade the overall perception of startups. S Ravi (Sethurathnam Ravi), the former BSE chairman and founder of Ravi Rajan & Co, warned that such activities could undermine investor confidence in new enterprises and taint the credibility of even established startups.
Recently, market regulator Securities and Exchange Board of India (SEBI) raised concerns over alleged fund diversion and document falsification against Gensol Engineering Ltd, which damaged BluSmart and resulted in the company's discontinuation of services. Anmol Singh Jaggi and his brother Puneet Singh Jaggi are the co-founders of BluSmart and directors of Gensol Engineering, an Ahmedabad-based solar engineering and services company. Following the SEBI notice, both stepped down as directors.
"It's not good for two reasons. When new investors and companies arrive, these people (investors) will not begin funding them; instead, they will stop funding. They would believe that startups are simply about personal benefit and valuation, which is not a healthy thing," stated the former BSE chairman.