Who's responsible for the Gensol mess?
Investor recovery may be slow unless a new buyer is brought in under IBC or a scheme of compromise is approved.
This time, the cracks are deep. It may significantly impact retail investors’ money, leading to major losses. As in most companies engulfed in a crisis, retail shareholders are left holding the baby. Ditto for Gensol Engineering.
According to Chandwani, if the fund diversion in Gensol is proven, Sebi may direct disgorgement under Section 11B of the Sebi Act and initiate prosecution. “The company may face delisting pressures, and revival would need a complete promoter overhaul, special audit, and board reconstitution, supervised by Sebi,” she says.
Investor recovery may be slow unless a new buyer is brought in under IBC or a scheme of compromise is approved.