Rajesh Exports Hits Lower Circuit Again As ED Finds FEMA Violations, Salary Anomalies

Rajesh Exports shares were locked at the 5 per cent lower circuit on June 25 as fresh regulatory action and investigation reports hit investor sentiment. The stock slipped to Rs 97.02 on the NSE in early trade, its second straight session of hitting the lower circuit.

The stock had surged over 40 per cent in the past week across seven trading sessions, but the gains quickly reversed as concerns over compliance issues started weighing on sentiment.

ED Action Triggers Fresh Wave Of Concerns

The pressure on the stock intensified after the Enforcement Directorate (ED) carried out search operations at nine locations linked to the company and its associates under the Foreign Exchange Management Act (FEMA). The agency has since flagged a series of alleged irregularities, including possible share price manipulation, gaps in transaction records and questionable foreign exchange dealings.

Among the key concerns highlighted by investigators is the absence of proper documentation for overseas transactions and investments. The ED also said that there is a mismatch in gold inventory records, which it estimates at around 40 per cent, raising questions over the company’s internal accounting practices.

In addition, the agency has reportedly indicated that about $20 million may have been diverted, though details around the alleged flow of funds are still under examination.