Rajesh Exports, a prominent gold jewellery manufacturer, has issued a detailed five-point clarification to stock exchanges following an interim order from the Securities and Exchange Board of India (SEBI). The market regulator's order, dated June 3, 2026, raised serious allegations concerning financial misrepresentation and the diversion of funds. The company firmly refuted the claims, attributing the situation to a "communication gap."
SEBI's Interim Findings and Allegations
In its interim order, SEBI took stringent action by barring Rajesh Exports and its promoter, Rajesh Mehta, from accessing the securities market until the completion of its ongoing investigation. The regulator's primary concerns revolved around the company's financial reporting, specifically alleging that Rajesh Exports misrepresented its financial position by not consistently disclosing the financial statements of its overseas subsidiaries.
These subsidiaries, particularly Switzerland-based Valcambi SA, were reported to account for an astonishing 97-99 percent of the company's consolidated revenue between fiscal years 2021 and 2025. However, SEBI noted that Valcambi SA's audited standalone financial statements showed negligible revenue, leading to an alleged misrepresentation of approximately Rs 15.15 lakh crore, or 99.80 percent of subsidiary revenue.
Furthermore, SEBI flagged reported sales and purchases totaling over Rs 11,487 crore with Affluence Shares and Stocks Pvt Ltd, transactions which the latter allegedly denied. The regulator suggested these were non-genuine accounting entries linked to promoter Rajesh Mehta’s personal derivatives trading, used to inflate turnover. Allegations also include the routing of Rs 926 crore, including Rs 339 crore, to accounts linked to Mehta without proper board or audit committee approvals and without necessary related-party disclosures.
Rajesh Exports Responds with Five-Point Clarification
In response to SEBI's requisitions and the interim order, Rajesh Exports submitted a five-point clarification, vehemently rejecting all adverse media reports and the allegations:
- The company emphasized that the SEBI order is interim, and no adverse conclusions have been reached by the regulator on any aspect.
- Rajesh Exports asserted that its declared revenues are accurate, and there has been no overstating of financial figures.
- The company suggested that the issues stem from "some type of communication gap and confusion" between SEBI and the company.
- It confirmed that it is actively in the process of clarifying all aspects to SEBI by submitting all required and relevant documents.
- Rajesh Exports expressed confidence that SEBI, upon reviewing the authenticated documents, will "clarify the situation and arrive at the correct conclusion."
The company also stated its intention to issue a broader media clarification shortly to address and settle what it termed "unnecessary speculation in the media."
Market Impact
Following the news of SEBI's interim order, shares of Rajesh Exports experienced a significant downturn. The stock hit a lower circuit of 5 percent, trading at Rs 104.65 on Thursday. This decline pushed the company's market capitalization below Rs 3,100 crore. The stock has seen a sharp depreciation, tanking 56 percent from its 52-week low recorded in December 2025.