Mint (Nehal Chaliawala, Neha Joshi) has published on the recent SEBI Interim order against Gensol Engineering Limited, where SEBI has debarred the Jaggi brothers (the promoters) and have accused them of serious infractions, including securities fraud, fund diversion, and document forgery.
In this context, Mr. Sumit Agrawal, Founder of Regstreet Law Advisors and former SEBI officer, was quoted in Mint’s in-depth article titled “𝘎𝘦𝘯𝘴𝘰𝘭 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘑𝘢𝘨𝘨𝘪 𝘉𝘳𝘰𝘵𝘩𝘦𝘳𝘴: 𝘈 𝘓𝘰𝘰𝘬 𝘐𝘯𝘴𝘪𝘥𝘦 𝘵𝘩𝘦 ‘𝘗𝘪𝘨𝘨𝘺𝘣𝘢𝘯𝘬’ 𝘜𝘯𝘭𝘰𝘤𝘬𝘦𝘥 𝘣𝘺 𝘚𝘌𝘉𝘐’. Mr. Sumit Agrawal expressed concerns about the lack of justification for the restraining directions on the company and stock split, highlighting a broader issue of regulatory accountability. The order also exposes the failure of oversight from SEBI and the stock exchanges, particularly when the company was shifted from SME platform to the main board.
He further stated that “𝘜𝘯𝘧𝘰𝘳𝘵𝘶𝘯𝘢𝘵𝘦𝘭𝘺, 𝘳𝘦𝘨𝘶𝘭𝘢𝘵𝘰𝘳𝘺 𝘭𝘢𝘱𝘴𝘦𝘴 𝘭𝘦𝘢𝘥𝘪𝘯𝘨 𝘵𝘰 𝘪𝘯𝘷𝘦𝘴𝘵𝘰𝘳 𝘭𝘰𝘴𝘴𝘦𝘴 𝘢𝘯𝘥 𝘥𝘦𝘧𝘢𝘶𝘭𝘵𝘴 𝘰𝘯 𝘷𝘦𝘯𝘥𝘰𝘳 𝘰𝘣𝘭𝘪𝘨𝘢𝘵𝘪𝘰𝘯𝘴 𝘰𝘧𝘵𝘦𝘯 𝘨𝘰 𝘶𝘯𝘢𝘤𝘤𝘰𝘶𝘯𝘵𝘦𝘥 𝘧𝘰𝘳 𝘪𝘯 𝘐𝘯𝘥𝘪𝘢, 𝘸𝘪𝘵𝘩 𝘦𝘯𝘧𝘰𝘳𝘤𝘦𝘮𝘦𝘯𝘵 𝘢𝘤𝘵𝘪𝘰𝘯𝘴 𝘧𝘳𝘦𝘲𝘶𝘦𝘯𝘵𝘭𝘺 𝘤𝘰𝘮𝘪𝘯𝘨 𝘰𝘯𝘭𝘺 𝘢𝘧𝘵𝘦𝘳 𝘴𝘪𝘨𝘯𝘪𝘧𝘪𝘤𝘢𝘯𝘵 𝘥𝘢𝘮𝘢𝘨𝘦 𝘩𝘢𝘴 𝘣𝘦𝘦𝘯 𝘥𝘰𝘯𝘦.”
Additionally, Mr. Agrawal clarified that as it was an interim order, SEBI could be awaiting the forensic audit to determine if auditors or directors were negligent or complicit and action, if warranted, would follow post-audit findings.
The article also quotes other experts such as Shriram Subramanian, the managing director of proxy advisory firm InGovern and a corporate governance expert and Kunal Sharma, partner at Singhania & Co.