Rajesh Exports Stock Plummets to Lower Circuit for Third Straight Session Amid Sebi Probe Allegations
Shares of Rajesh Exports faced severe selling pressure on Monday, plunging to the 5 percent lower circuit for the third consecutive trading session. The sustained decline comes as investors react intensely to allegations by Securities and Exchange Board of India (Sebi) regarding improper fund routing through personal accounts and promoter-linked entities without adequate disclosure.The stock closed locked at its lower circuit limit of Rs 94.50, marking a decline of Rs 4.95 or 4.98 percent. This is the third instance since Sebi's investigation details emerged where the company's stock has hit its lower bound limit.
Company Rejects Revenue Inflation Allegations by Sebi
Rajesh Exports, which operates as a gold refiner and jewellery exporter, vehemently disputed the interim order issued by Sebi on June 3. This order alleged massive revenue inflation amounting to Rs 15.15 lakh crore between Financial Years (FY)21 and FY25.Responding directly to the findings, founder and chairman Rajesh Mehta asserted that the allegations were mistaken. "They have taken the EBITDA and termed it as revenue," he stated. He further explained, "EBITDA means gross profit. They have taken the gross profit and termed it as revenue. Looking at the number (Rs 15.15 lakh crore), they have made a huge mistake."
Chairman Claims Regulators May Miss Key Documents
Mr. Mehta also contended that Sebi may not have located relevant documentation despite the company's efforts to cooperate fully. The company had previously submitted between 300 and 400 gigabytes of documents to the regulator, which run into lakhs of pages."We had given them 300-400 GB documents, running into lakhs (of pages). I think they have not been able to find the correct documents. The whole confusion has happened there," Mehta added. Rajesh Exports confirmed it would resubmit all requested documents within a timeframe of 15 days.
Sebi Chairman Offers Limited Commentary on Ongoing Cases
In parallel to the market turmoil, Sebi Chairman Tuhin Kanta Pandey offered measured commentary regarding ongoing investigations. He declined to comment publicly on the specifics of the case involving Rajesh Exports.Mr. Pandey emphasized the process, stating, "As a matter of principle, on individual cases, we don't really comment in the media." He added that such matters constitute a quasi-judicial process where orders are issued and must be adhered to as per legal mandates.
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