Rajesh Exports Shares Extend Decline For Sixth Straight Day After Chairman Decides Not to Challenge Sebi Order

Shares of Rajesh Exports extended losses on June 11 as the stock fell nearly 5 per cent in early trade to a low of Rs 80.43 apiece on the NSE. The stock extended its losing spree after Rajesh Exports chairman Rajesh Mehta said he does not plan to challenge Securities Exchange Board of India’s interim order. The management’s move is expected to significantly affect investor sentiment and stock’s trajectory in today’s session.

What Rajesh Mehta Said

According to a report by the Times of India, Rajesh Exports’ Executive Chairman Rajesh Mehta has clarified that the company does not plan to challenge the market regulator's interim order. Mehta mentioned that he does not see the order as a matter that requires contesting, he added that the company is cooperating fully with the investigation and its forensic auditors.

Despite declaring his intention to not challenge the order, Mehta maintained that neither the company nor its personnel engaged in any wrongdoing or misrepresentation. He added that the regulator’s order stems from a misunderstanding of their business model.

He further clarified that the group's consolidated revenue which stood at Rs 7.8 lakh crore for FY26 was led by its Swiss subsidiary, Valcambi SA, which refines and supplies gold bullion to global central banks and major market participants, while standalone domestic operations account for a smaller fraction, around Rs 9,200 crore.

Mehta emphasised that the regulator has not issued any final, conclusive adverse findings or penalties against the firm, nor has it barred the company from conducting its day-to-day business. He added that the company has submitted over 300 gigabytes of data making up 40,000 to 50,000 documents, to clarify its accounting stance.

What Sebi Found In Its Investigation

Sebi’s probe, however, raised several corporate governance red flags which in turn triggered the order. The market watchdog alleged in its investigation that the company misrepresented Rs 15.2 lakh crore in consolidated aggregate revenues for a five-year period from FY21 to FY25. The regulator added that the alleged inflation accounted for 99.8 per cent of the company's total reported consolidated subsidiary revenues during that timeframe.

The market watchdog also uncovered a multi-layered international corporate structure spread across India, Singapore, the UAE, and Switzerland. The regulator alleged that while the group projected big global scales, its domestic standalone business was marginal, contributing as little as 0.8 per cent to 2.6 per cent of group revenue.

In its order the regulator stated that overseas intermediate companies have so far failed to provide adequate documentation to justify the numbers. Citing these extensive observations Sebi’s order barred Rajesh Mehta from buying, selling, or dealing in the securities market until further notice.

So far the stock has fallen each day after the order was passed on June 3. Notably, the stock has declined over 26 per cent since June 3. At the time of writing shares of Rajesh Exports traded at Rs 80.43 apiece down by 5 per cent on the NSE.