The Securities and Exchange Board of India (Sebi) has barred the promoter of Bengaluru-based Rajesh Exports Limited (REL) from dealing in the company's shares over allegations of financial misrepresentation. The market regulator also flagged non-cooperation by REL's statutory auditors in the investigation.
Sebi's Action Against Promoter
Sebi issued an interim order on June 4, 2026, restraining the promoter from buying, selling, or dealing in securities of Rajesh Exports until further notice. The regulator found that the company had misrepresented its financial statements, leading to a violation of listing obligations and disclosure requirements.
The order came after a detailed examination of REL's financial records, which revealed discrepancies in revenue recognition and related-party transactions. Sebi noted that the promoter failed to provide adequate explanations for these irregularities.
Non-Cooperation by Auditors
In addition to the promoter's actions, Sebi highlighted that the statutory auditors of Rajesh Exports did not cooperate with the investigation. The auditors failed to respond to queries and provide necessary documents, further complicating the probe.
Sebi has directed the auditors to submit a detailed response within 15 days, failing which appropriate action may be taken against them.
Impact on Rajesh Exports
Rajesh Exports, a leading gold jewelry manufacturer and exporter, has seen its stock price decline significantly following the Sebi order. The company's shares fell by over 8% on the Bombay Stock Exchange on June 4. Analysts expect further volatility as the investigation continues.
Sebi's action underscores its commitment to ensuring transparency and accountability in the securities market. The regulator has been increasingly vigilant against corporate governance lapses and financial misrepresentation.
Company's Response
Rajesh Exports has not yet issued an official statement on the Sebi order. However, sources close to the company indicate that they are exploring legal options to challenge the regulator's decision. The promoter has denied any wrongdoing and claims that all financial disclosures were made in compliance with applicable laws.
Sebi's investigation is ongoing, and further actions may be taken based on the findings. Market participants are advised to exercise caution while dealing in the shares of Rajesh Exports.
