BS EDIT: Why startups need stronger board oversight

By Business StandardPublished On Apr 18, 2025

A costly breach

Gensol’s promoters allegedly diverted Rs 262 crore for personal use, exposing governance failures and shaking confidence in startup ethics

Sebi’s call for vigilance

Sebi says no systemic issue exists, but urges proactive boards, auditors, and independent directors to check misconduct early

Pattern of lapses

From fintech to edtech, several startups face regulatory scrutiny. Gensol adds to a growing list of governance failures

Business vs personal

Founders allegedly used public funds for luxury purchases, blurring lines between business needs and personal indulgence

Impact beyond investors

BluSmart’s abrupt shutdown left consumers stranded and investors hit, showing how poor governance affects public trust

Time for bold boards

Startups must not trade ethics for speed. Strong boards and independent oversight are essential for long-term credibility