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Markets regulator Sebi on Wednesday upheld its interim order restraining Gensol Engineering and its former top executives Anmol Singh Jaggi and Puneet Singh Jaggi from the securities markets on concerns over fund diversion and corporate governance failures.

Additionally, the regulator said Jaggi brothers, also co-founders of EV ride-hailing firm BluSmart Mobikity, would continue to be debarred from holding the position of a director or key managerial personnel in Gensol.

The final order comes as the company undergoes insolvency proceedings under the supervision of a court-appointed professional.

The brothers have been accused by Sebi of siphoning off loan funds from their publicly-listed company Gensol for personal use, raising concerns over corporate governance and financial misconduct.

In a detailed confirmatory order, Sebi stated that the prima facie findings of misappropriation of funds and falsification of conduct letters to CRAs -- initially highlighted in its April 2025 interim order-- remain unrebutted by the company's promoters.

"... prima facie findings regarding diversion / mis-utilisation of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation into this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties.

"The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," Sebi Whole Time Member Kamlesh C Varshney said in his order.

Given these developments, Sebi said it finds no reason to lift or modify the restrictions imposed earlier and accordingly confirmed the directions of its interim order.

However, the regulator clarified that the directions concerning Gensol will remain subject to any further orders from the competent tribunal or court overseeing the insolvency process.