Gensol shares fall 5% after SEBI bars promoters from securities market

Following allegations by the Securities and Exchange Board of India (SEBI) that its proprietors had embezzled company cash, shares of Gensol Engineering Ltd. dropped as much as 5%, reaching an annual low on Wednesday. The company's stock was down 4.99%, or ₹6.50, at 12:45 p.m. on the Bombay Stock Exchange (BSE), reaching ₹123.65. The same sum, which is also the 52-week low, was the intraday low thus far.

In its ruling, SEBI stated that the company had obtained ₹975 crore in loans from organizations like Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) to buy electric vehicles (EVs) for BluSmart, its ride-hailing business.

The ruling said that just a portion of the funds were utilized for that purpose, with the remainder being diverted for unrelated personal costs including investing in other ventures and purchasing a posh condominium in Gurugram. Additionally, according to SEBI's ruling, Ashneer Grover's IT start-up, Third Unicorn Pvt. Ltd., received ₹50 lakh in investment.