$RAJESHEXPO

Rajesh Exports hit the 5 per cent lower circuit in early trade on Thursday after the Securities and Exchange Board of India (SEBI) issued an interim order alleging significant financial irregularities and diversion of funds by the company and its promoter. The stock declined 4.99 per cent to ₹103.92 on the NSE after SEBI barred Rajesh Exports and its Chairman, Rajesh Mehta, from accessing the securities market until the completion of an ongoing investigation. In its order dated June 4, the market regulator alleged that the jewellery exporter had substantially overstated its business operations through overseas subsidiaries over several years. SEBI estimated the alleged revenue misrepresentation at approximately $158.3 billion, equivalent to around ₹15.15 lakh crore. The regulator observed that between 97 per cent and 99 per cent of the company’s consolidated revenue was reported through foreign subsidiaries, particularly Switzerland-based Valcambi SA. However, Rajesh Exports allegedly did not disclose the financial statements of these subsidiaries to investors, while Valcambi’s standalone audited accounts reportedly showed minimal revenue generation. According to SEBI, the company overstated subsidiary revenues by nearly ₹15.15 lakh crore during FY21 to FY25, representing about 99.8 per cent of its reported consolidated revenue during the period. The findings have raised serious concerns regarding the accuracy of the company’s financial disclosures and corporate governance practices.