Governance matters: Startups need strong, independent boards for growth

With Gensol, and its consumer-facing sister company BluSmart, coming under the Sebi lens, the list of startups caught on the wrong side of the law has grown longer

The Gensol Engineering case of alleged fund diversion by promoters for personal use is being counted among the biggest frauds in the Indian startup world. While it’s a loss of face for the much-celebrated entrepreneurship in the country, it also raises questions on the regulatory environment in the startup universe. Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey has, in an interview with this newspaper, said misgovernance issues, like in the case of Gensol, are not a systemic problem and that guardrails and governance standards are in place to prevent corporate frauds. Even as the Sebi chief