Two more independent directors at Gensol Engineering Ltd. resigned on Thursday amid mounting troubles for the company under regulatory scanner.
Harsh Singh and Kuljit Singh Popli have left with immediate effect, according to an exchange filing. This comes a day after another independent director, Arun Menon, tendered his resignation.
The Securities and Exchange Board of India this week barred Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi for alleged fund diversion and record falsification.
The markets regulator has prohibited the Jaggi brothers from holding any key managerial positions within the company, effectively removing them from their leadership roles.
Gensol said it has complied with the order.
The market watchdog has also halted Gensol's announced stock split, further impacting investor sentiment. The combination of leadership changes and regulatory actions has contributed to the ongoing decline in Gensol's share price.
In his resignation letter, Kuljit Singh Popli said he was "pained" by the recent developments.
"I was hoping for some positive developments to happen past one month however the way things have unfolded and come to light I am not in a position to continue as Independent Director (sic)," he wrote.
"I was hopeful that the company that has grown so fast and had been enjoying good reputation and goodwill, will continue to grow and create value for all stakeholders and governance issues as brought out will be addressed. However that has not happened (sic)," he added.
On the other hand, Harsh Singh cited other "professional commitments" for quitting.
"I am aware that my decision comes at a time when the Company is facing a difficult time. However, my professional commitments at Patna are coming in the way of my contributing to the company in a useful manner. I sincerely feel that a more experienced person in my place is required on the Board as an independent director to steer the company through in these difficult times (sic)," he wrote in his resignation letter.
Before the exit of the two independent directors was announced, Gensol Engineering's share price shed 5% to slip to the record low of Rs 116.54 apiece on the NSE, compared to 1.77% gain in the benchmark Nifty 50. The stock has declined 84% since the start of the year.
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