Rajesh Exports Faces SEBI Action Over Financial Misrepresentation

Rajesh Exports Ltd. is under investigation by SEBI for allegedly misrepresenting financial data amounting to Rs 15.15 lakh crore. The market regulator has issued an interim order against the company and its chairman, citing serious discrepancies and a lack of cooperation during the inquiry. The investigation, prompted by a shareholder complaint, revealed potential inflation of revenues and significant issues with financial documentation. SEBI has restricted the chairman from trading in the company's securities and mandated full cooperation with the ongoing investigation. This situation raises concerns about the company's financial integrity and future operations.

By Narendra Chaudhary Jun 4, 2026, 10:14 IST

SEBI Takes Action Against Rajesh Exports

Rajesh Exports Ltd. (REL) has come under scrutiny from the Securities and Exchange Board of India (SEBI) for allegedly misrepresenting financial data amounting to around Rs 15.15 lakh crore. An interim ex-parte order has been issued against the company and its Chairman and Managing Director, Rajesh Mehta, due to initial findings of financial discrepancies, irregular fund routing, and lack of cooperation during an ongoing investigation. Based in Bengaluru, Rajesh Exports is a prominent gold refiner and jewellery manufacturer listed on both the NSE and BSE.

As of the March 2026 quarter, the Life Insurance Corporation of India (LIC) holds approximately 10.80% of Rajesh Exports, maintaining this stake without any transactions since at least September 2023. Additionally, foreign institutional investors (FIIs) owned 14.26% of the company as of March 2026, a decrease from 17.60% in March 2023.

Details of the Investigation

The investigation stems from a shareholder complaint filed in March 2024, which highlighted concerns regarding significant outstanding trade receivables on the company's balance sheet. SEBI initiated a formal inquiry covering the timeframe from April 2020 to March 2024 and appointed BDO India Services as the forensic auditor.

According to SEBI's findings, REL allegedly inflated its consolidated revenues by approximately Rs 15.15 lakh crore, which constitutes 99.80% of the total consolidated revenue reported for the fiscal years 2020-21 to 2024-25. The 109-page interim order from SEBI indicated that the investigation revealed prima facie evidence suggesting that between 97-99% of the company's reported revenue might have been exaggerated, labeling the findings as "egregious and unprecedented." SEBI noted that Rajesh Exports did not grant access to essential accounting systems, withheld vital financial documents, and failed to provide complete records requested by investigators and forensic auditors. Consequently, the forensic auditor could not verify substantial portions of the company's transactions due to missing or incomplete supporting documentation.

Moreover, SEBI has prohibited Rajesh Mehta from engaging in any buying, selling, or trading of Rajesh Exports securities until further notice. The regulator has also instructed the company to fully cooperate with the investigation and ensure accurate and transparent disclosures in its financial statements and related-party transactions.