Sebi Says Rajesh Exports Misrepresented Rs 15.15 Lakh Crore: Implications for LIC, Others
New Delhi: Market regulator, Securities and Exchange Board of India or Sebi, has issued an interim ex-parte order against multinational gold retailer Rajesh Exports Limited, alleging financial misrepresentation of about Rs 15.15 lakh crore, among other wrongdoings including sustained non-disclosure and misrepresentation of numbers.
Economic Times reports that Rajesh Exports' shares saw a sharp 5% decline following the announcement, and also that shares of Life Insurance Corporation of India have fallen over 1%. LIC holds a 10.80% stake in the company.
No domestic mutual fund currently owns Rajesh Exports, Moneycontrol notes.
In recent years, Mint notes, the company has "only eroded investor wealth." Citing data from the NSE, the report says that Rajesh Exports' share price has crashed 42% in 2026 so far, 49% in a year, 82% in three years and 81% in five years.
Along with LIC, 194,110 retail investors own stakes in the firm. "Together, they face the risk of losing Rs 770 crore in wealth," the report says.
Moneylife is among news outlets that have reported that pending further directions, Sebi has restrained its promoter and executive chairman Rajesh Mehta from buying, selling or otherwise dealing in the company's securities.
The over 100-page order was issued a day ago on June 3. In it, Sebi whole-time member Kamlesh Chandra Varshney noted "approximately 97% to 99% of the revenues of the company are inflated, are egregious and unheard of."
This 97%-99% of Rajesh Exports' consolidated revenue. Sebi noted, came from overseas subsidiaries, particularly Switzerland-based Valcambi SA, a firm which disclosed negligible standalone revenues in its audited financial statements. Rajesh Exports has routinely avoided disclosure of its subsidiaries' financials in the public domain.
In addition, Rajesh Exports also recorded Rs 114.87 billion in sales and Rs 114.88 billion in purchases with Affluence Shares and Stocks Private Limited, a company which denied participating in any such sales.
According to Sebi, a 2024 shareholder complaint alleging possible financial misrepresentation in Rajesh Exports' books, particularly regarding large trade receivables that had remained outstanding for extended periods, led to the investigation.
The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
