The Securities and Exchange Board of India (SEBI) has barred the promoter of Bengaluru-based Rajesh Exports from the securities market for misrepresenting revenues amounting to Rs 15 lakh crore. The regulator also flagged non-cooperation by the company's statutory auditors.
Details of the SEBI Order
SEBI's order, issued on June 4, 2026, highlighted that Rajesh Exports had inflated its revenue figures over several years, misleading investors and the public. The promoter, identified as Rajesh Mehta, has been restrained from buying, selling, or dealing in securities until further notice.
Non-Cooperation by Auditors
The regulator also pointed out that the statutory auditors of Rajesh Exports failed to cooperate with the investigation. SEBI noted that the auditors did not provide necessary documents and explanations, hampering the probe into the financial irregularities.
Impact on Investors
The misrepresentation of revenue has raised concerns among investors, as Rajesh Exports is a prominent player in the gold and jewelry sector. The company's shares have been under pressure since the news broke, with many investors seeking clarity on the extent of the irregularities.
SEBI has directed the company to appoint a new auditor and conduct a forensic audit of its financial statements for the past five years. The regulator is also investigating other entities involved in the alleged fraud.
