BENGALURU — The Securities and Exchange Board of India (SEBI) has issued an interim ex-parte order against Rajesh Exports Limited and its founder and Chairman Rajesh Mehta, alleging irregularities in financial reporting and related transactions, according to the regulator’s findings.
Rajesh Exports Limited, a Bengaluru-based gold refining and jewellery manufacturing company, is known for its global operations, including overseas refining interests. The company has not been held guilty at this stage, as the matter remains under investigation.
SEBI Findings (Interim)
In its interim order, SEBI has raised concerns regarding certain aspects of the company’s financial disclosures. These include alleged discrepancies in reported revenues, particularly in relation to overseas subsidiary transactions, which the regulator stated require further verification.
The regulator has also flagged concerns related to certain fund movements and related-party transactions, stating that a forensic audit is required to examine the nature and purpose of such transactions. SEBI has referred aspects of the matter to the National Financial Reporting Authority (NFRA) for further review of audit-related issues.
SEBI’s order is interim in nature and does not constitute a final finding of wrongdoing.
Regulatory Action
As part of the interim measures, SEBI has restricted Rajesh Exports, Rajesh Mehta, and related entities from accessing the securities market until further directions. The regulator has also ordered a fresh forensic audit to examine the company’s financial records in detail.
Company Response
Rajesh Exports and its management have denied the allegations, stating that their financial disclosures are accurate and compliant with applicable accounting standards. The company has said it will submit a detailed response to SEBI and cooperate with ongoing investigations.
The company has also stated that differences in reporting methodologies, including consolidated versus standalone financial reporting, may have contributed to the concerns raised.
Market Reaction and Status
Following the SEBI order, the company’s shares witnessed volatility in trading sessions, with significant declines reported by market observers. However, no final determination of liability or misconduct has been made.
The investigation remains ongoing, and SEBI is expected to review further submissions and audit findings before taking any final action.
