Gensol Engineering share price hits 5% lower circuit as SEBI bars promoters from securities markets; stock split on hold

Stock Market Today: Gensol Engineering share price hit the 5% lower circuit in the morning trade on Wednesday, April 16, as the stock market regulator Securities and Exchange Board of India (SEBI) took strict action against the promoters and put the proposed 1:10 stock split plan on hold.

In a case involving fund diversion and governance violations, capital markets regulator SEBI on Tuesday announced prohibiting Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from trading in the securities markets until further orders.

Additionally, until additional directives are issued, the regulator has prohibited Anmol and Puneet Singh Jaggi from serving as directors or in other important management positions at Gensol Engineering.

Gensol Engineering other developments

Gensol Engineering was also in the news as the company had recently announced a 1:10 stock split.

However, SEBI also directed the company to put the proposed stock split on hold.

"It must be mentioned that Gensol recently announced a stock split of its shares in the ratio of 1:10, which is likely to attract more retail investors to the scrip. At this stage, allowing this corporate action may not be in the interest of the investors," SEBI said in its order.

SEBI also said it shall appoint a forensic auditor to examine the books of accounts of Gensol and its related parties. "The forensic auditor/audit firm so appointed as per this Order shall submit a report to SEBI within six months from the date of appointment," the order said.

Gensol Engineering share price movement

The share price of Gensol Engineering was down 5% on the BSE on Wednesday. Gensol Engineering's share price opened at ₹123.65, 5% lower than the previous day's closing price of ₹130.15 on the BSE. On the National Stock Exchange (NSE), the share price of Gensol Engineering was trading at ₹122.68, also down by 5%. 

The share price of Gensol Engineering has dropped precipitously in the recent past and has continued to be the subject of numerous rating downgrades.

In early February, Gensol Engineering's share price was trading near ₹740, but it has since fallen significantly. On Tuesday, the stock closed around ₹130 on the BSE, registering a decline of over 2%. On the NSE, it settled at ₹129, down 2.76%.

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