The Securities and Exchange Board of India (SEBI) has confirmed its interim directions against Rajesh Mehta, founder and chairman of Rajesh Exports Ltd, upholding restrictions on his dealings in the company's securities. This final order comes after allegations of significant revenue misrepresentation by the Bengaluru-based gold and diamond jewellery manufacturer.
Continued Restrictions on Promoter
Under SEBI's latest order, Rajesh Mehta will remain prohibited from directly or indirectly buying, selling, or otherwise dealing in the securities of Rajesh Exports until further notice. This measure was initially imposed in June following the regulator's preliminary findings.
SEBI's investigation, which began with an interim order, alleged that Rajesh Exports misrepresented approximately ₹15.15 lakh crore in revenue from its subsidiaries between the financial years 2021 and 2025. This amount reportedly accounted for 99.80 percent of the company's total revenue during that period, raising serious concerns about financial disclosures.
Directives to Rajesh Exports
In addition to the restrictions on Mehta, SEBI has directed Rajesh Exports to continue ensuring "true, fair, accurate and complete disclosures" in its financial statements, related-party transactions, and other material information. These disclosures must adhere strictly to the provisions of the SEBI Act, 1992, and the Listing Obligations and Disclosure Requirements (LODR) Regulations.
The regulator also mandated that the company and its noticees cooperate fully with the investigating authority. They are required to provide all requested documents, information, and explanations within specified timelines to aid in the ongoing probe.
Expedited Investigation Underway
SEBI has urged the investigating agencies and the forensic auditor, appointed subsequent to the interim order, to complete their work expeditiously. The outcome of these investigations will be crucial in determining the full extent of the alleged financial irregularities and any further regulatory actions.