India’s capital markets regulator, the Securities and Exchange Board of India, has initiated stringent action against Rajesh Exports Limited and its Managing Director Rajesh Mehta over alleged financial irregularities and accounting violations. The regulator has issued an interim order accusing the company of inflating revenues, creating fictitious transactions and allegedly diverting funds through entities linked to the promoter group.
In its 109-page order, SEBI stated that Rajesh Exports had allegedly engaged in a pattern of non-genuine transactions between FY2021 and FY2025, resulting in the reporting of approximately ₹15.15 crore in fictitious revenue. The regulator further alleged that a substantial portion of the company’s reported business activity lacked genuine commercial substance, potentially misleading investors and stakeholders regarding its financial performance.
SEBI Whole-Time Member Kamlesh Chandra Varshney observed that the company had allegedly violated accounting norms and disclosure requirements, raising concerns about corporate governance practices and the accuracy of its financial statements. The regulator said the alleged irregularities could have significantly impacted investor decision-making and market transparency.
Rajesh Exports, one of India’s largest gold exporters and a major player in the jewellery industry, has been a prominent name in the sector for decades. Under the leadership of Rajesh Mehta, the company expanded from a jewellery trading business into a global gold refining and manufacturing enterprise. The company gained international recognition following its acquisition of Swiss gold refinery Valcambi in 2015.
The regulatory action triggered a sharp reaction in the stock market, with Rajesh Exports shares falling more than 5% following the announcement. The development also affected Life Insurance Corporation of India, which holds a 10.80% stake in the company. LIC’s shares also witnessed pressure amid concerns over the potential impact of the allegations on its investment.
Market participants are now closely monitoring the case as further regulatory proceedings unfold. The allegations against Rajesh Exports represent one of the most significant corporate governance challenges faced by a major player in India’s gold and jewellery sector in recent years, with potential implications for investors, shareholders and the broader market.