SEBI Confirms Interim Directions Against Rajesh Exports Over Financial Misrepresentation Probe — October 14, 2026

The Securities and Exchange Board of India (SEBI) has confirmed and continued the directions issued against Bengaluru-headquartered gold refiner Rajesh Exports Limited and its promoter-chairman Rajesh Mehta. In a confirmatory order issued on October 14, 2026, the markets watchdog upheld the regulatory curbs and investigative mandates initiated in its earlier ex-parte interim order.

The regulatory action stems from an extensive probe into the company’s accounts between April 1, 2020, and March 31, 2025 (FY21 to FY25). SEBI’s initial 109-page interim order, passed on June 3, 2026, by Whole-Time Member Kamlesh Chandra Varshney, alleged that Rajesh Exports had engaged in multi-year financial misrepresentation involving approximately ₹15.15 lakh crore in consolidated revenues.

Key Findings and Directives Upheld

The regulator maintained its prima facie findings regarding significant corporate governance lapses, lack of disclosure, and accounting irregularities. With the confirmatory order, the interim directions remain fully operative:

• Restraint on Promoter: Promoter and Executive Chairman Rajesh Mehta continues to be barred from dealing in the securities of Rajesh Exports until the completion of ongoing regulatory proceedings.
• Continuation of Forensic Audit: The mandate for an exhaustive independent forensic audit into the company's books of accounts and transactions remains in effect.
• Disclosure Requirements: The company remains directed to provide unhindered cooperation, books of accounts, and primary transaction records to investigators and auditors.
• Regulatory Scrutiny of Overseas Numbers: Scrutiny will continue over the reported financials of its foreign subsidiaries, including Swiss gold refinery Valcambi SA, which accounted for between 97% and 99.8% of the company's consolidated top line during the period under examination.

Background of the Regulatory Action

The probe originated from a shareholder complaint concerning long-pending trade receivables and financial disclosures. SEBI noted in its initial proceedings that Rajesh Exports had withheld access to underlying accounting records and primary transaction data, often citing foreign data privacy frameworks such as the Swiss Federal Act on Data Protection (FADP) to avoid disclosing subsidiary-level details. The regulator dismissed these defenses, ruling that listed Indian entities cannot cite foreign data regimes to sidestep domestic reporting obligations.

SEBI had also red-flagged transactions where company funds were routed through personal bank accounts of promoter Rajesh Mehta without necessary board authorisations, alongside instances where derivative trades were improperly attributed. While Mehta and the company denied wrongdoing—maintaining that revenues were accurate and that transactions were conducted transparently on behalf of the firm—SEBI determined that the interim safeguards must persist while forensic assessments conclude.

Market Reaction and Investor Implications

Rajesh Exports (NSE: RAJESHEXPO, BSE: 531500), which once ranked among India’s highest-revenue listed corporations, has witnessed steep value erosion since the regulatory scrutiny escalated.

The stock, which closed around ₹53.41 prior to the order, has shed more than 50% of its value over a six-month horizon and remains placed under enhanced market surveillance mechanisms. With institutional holders such as Life Insurance Corporation of India (LIC) holding significant equity stakes, market participants and minority investors will be closely watching the outcome of the forensic audit and any subsequent adjudicatory proceedings by SEBI and the National Financial Reporting Authority (NFRA).

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