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SEBI cracks down on Rajesh Exports (Img: Internet)
New Delhi: Shares of jewellery exporter Rajesh Exports Ltd plunged 5 per cent on Thursday and hit the lower circuit after the Securities and Exchange Board of India (SEBI) barred the company’s promoter and Chairman-cum-Managing Director Rajesh Mehta from trading in the firm’s securities over alleged financial irregularities.
The sharp decline reflected investor concerns after SEBI released a detailed interim order pointing to suspected misstatements in the company’s financial accounts, diversion of funds and inadequate disclosures linked to related-party transactions.
Rajesh Exports shares plunged 5% and hit the lower circuit after SEBI barred CMD Rajesh Mehta from trading over alleged financial irregularities, fund diversion and massive revenue overstatement claims. #RajeshExports #SEBI #StockMarket #ShareMarket #BusinessNews
— Dynamite News (@DynamiteNews_) June 4, 2026
On the Bombay Stock Exchange (BSE), the stock slipped 4.99 per cent to Rs 104.65, while on the National Stock Exchange (NSE), it fell 4.99 per cent to Rs 103.92, both touching the day’s lower circuit limit.
In its 109-page interim order, the market regulator stated that preliminary findings indicated possible overstatement of nearly 97-99 per cent of the company’s reported revenues, describing the irregularities as highly serious in nature.
SEBI also alleged that company funds were routed through personal bank accounts and connected entities using layered transactions without adequate documentary backing or proper disclosures.
The regulator said Rajesh Exports was repeatedly asked to submit authentic financial records and provide clarity regarding the purpose of transactions, utilisation of funds and details of beneficiaries. However, the responses were found to be inadequate.
SEBI further noted that the company’s statutory auditors failed to fully cooperate during the investigation process. According to the order, auditors had assured the regulator that audit working papers would be submitted, but the documents were eventually not furnished.
The regulator observed that the continued non-cooperation appeared to obstruct the investigation and withhold material information.
Who is Rajesh Mehta? SEBI action triggers mystery around Rajesh Exports case
Following the findings, SEBI barred Rajesh Mehta from directly or indirectly buying, selling or dealing in the securities of Rajesh Exports until further orders.
The regulator also directed the company to maintain greater transparency in financial disclosures, related-party dealings and compliance with Listing Obligations and Disclosure Requirements (LODR) norms.
The latest regulatory action has intensified concerns around corporate governance standards at the company and triggered heavy selling pressure on the stock in Thursday’s trade.
