Rajesh Exports Shares Plunge Five Percent To Hit Lower Circuit Following Stringent SEBI Action

Mumbai: Shares of gold refiner and jewellery manufacturer Rajesh Exports Limited crashed by 5% on Thursday morning, rapidly freezing at the lower circuit limit of 104.65 Indian rupees on the Bombay Stock Exchange (BSE).

The aggressive sell-off was triggered by a damning 109-page interim ex-parte order issued by the Securities and Exchange Board of India (SEBI) against the company and its promoter.  The market regulator delivered a stunning blow to investor confidence by revealing prima facie evidence that nearly 97% to 99% of the company's reported consolidated revenue may have been artificially inflated between financial years 2021 and 2025.

SEBI Whole-Time Member Kamlesh Chandra Varshney described the massive financial discrepancies, which aggregate to approximately 15.15 lakh crore Indian rupees, as "egregious and unheard of" in the history of Indian capital markets.  The regulatory clampdown stems from a shareholder complaint filed in March 2024 concerning massive trade receivables. SEBI subsequently appointed BDO India Services to conduct a comprehensive forensic audit covering operations from April 2020 to March 2024.

According to the official order, the Bengaluru-based company and its management repeatedly demonstrated non-cooperation, actively withholding backend accounting access and crucial transaction documentations regarding its major overseas step-down subsidiaries in Singapore and Switzerland.  Citing immediate risks to market integrity, SEBI has barred Chairman and Managing Director Rajesh Mehta from buying, selling, or otherwise dealing in the securities of Rajesh Exports for three years.

Furthermore, the regulator uncovered evidence indicating that substantial personal derivative transactions executed by the promoter were misclassified as corporate business activities. Rajesh Exports has now been granted a strict 30-day window to submit all missing financial records, even as SEBI appoints a new forensic auditor to untangle the multi-layered financial structure.