Rajesh Exports Shares Tumble Following SEBI Order and Investigation

Shares of Rajesh Exports Ltd tumbled Thursday, hitting the lower circuit limit on the NSE. The drop was triggered by the Securities and Exchange Board of India, or Sebi, passing an interim order against the company and its Chairman and Managing Director, Rajesh Mehta.
The regulator alleged massive financial misrepresentation, along with serious issues concerning how funds were routed and a general lack of cooperation during the ongoing probe.
Sebi essentially froze the movement of shares, restraining Rajesh Mehta from buying, selling, or otherwise dealing in Rajesh Exports securities until further instructions come.
This wasn't just about the immediate market dip. The order itself, spanning nearly 109 pages, demanded that the company provide true and fair disclosures regarding its financials, related-party dealings, and all other mandatory disclosures under the Listing Obligations.
The core of the investigation pointed to serious accounting discrepancies. Sebi suggested that the company might have manipulated its revenue figures. Specifically, they flagged the potential recognition of gross gold transaction values instead of properly accounting for just the refining or processing income.
The scope of the potential deception was huge. The regulator estimated that the consolidated revenues, which clocked in around Rs 15.15 lakh crore, might have been misrepresented throughout the investigation period.
The watchdog also looked closely at the company’s auditors. Sebi referred the matter to the National Financial Reporting Authority, NFRA, to examine what the auditors were doing.
There were serious issues with cooperation. The company was repeatedly asked for financial records, explanations on fund flows, and supporting documents. Yet, they reportedly failed to provide satisfactory responses. This non-cooperation raised major red flags for the regulator.
One of the most striking findings came regarding the revenue structure. Sebi noted that almost 97 to 99 percent of the company’s consolidated revenue came from foreign subsidiaries, especially Valcambi SA. But the audited standalone statements from those subsidiaries only showed a tiny fraction of the revenue reported at the consolidated level.
This immediately raised questions about how the numbers were being presented.
The entire investigation covered a span from April 1, 2020, up until March 31, 2024.
This action followed a complaint lodged by a shareholder back in March 2024. That shareholder alleged misrepresentation related to large trade receivables that had been outstanding for over two years.
Meanwhile, the market reaction was immediate and sharp.
Life Insurance Corporation of India, or LIC, still holds a significant stake in Rajesh Exports. Their position remains relatively stable.
Shareholding data for the March 2026 quarter shows LIC owns 10.80%. That stake hasn't changed since at least September 2023. But the market price reflected the uncertainty.
At the current market level, LIC’s holding is worth roughly Rs 347 crore. That figure is significantly lower than the approximate Rs 637 crore it was valued at when the year started. The stock decline directly impacted the value of that holding.
Foreign institutional investors, or FIIs, have also been pulling back. Over the last three years, their exposure to Rajesh Exports has steadily decreased.
Total FII ownership dropped from 17.60% in March 2023 down to 14.26% by March 2026.
Key foreign players saw reductions too. Bridge India Fund owns 8.46%. Schwab Fundamental Emerging Markets Equity ETF holds 2.70%.
The combined value of these foreign holdings has also shrunk considerably. They are currently worth about Rs 456 crore, compared to roughly Rs 838 crore at the beginning of 2026.
The regulatory action seems to have severely damaged investor confidence. Shares in Rajesh Exports have been under pressure for a long time, declining nearly forty percent over the past year.
The latest Sebi move just added another layer of negative pressure, wiping out more market value in one go. It felt like a definitive signal that things were deeply troubled behind the scenes.
Written by Gree News Team — Senior Editorial Board
Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.
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