Shares of Rajesh Exports continued to face selling pressure on Monday, touching the 5 percent lower circuit limit of Rs 94.50, down Rs 4.95.
This marked the third straight session of circuit-triggered losses after Sebi flagged concerns over funds routed via personal and promoter-linked accounts without adequate disclosure.
Sebi Chairman Tuhin Kanta Pandey declined to comment on the case, citing the quasi-judicial nature of proceedings. On broader regulatory matters, he noted that the tokenisation pilot programme is expected to take six to nine months.
“As a matter of principle, on individual cases, we don’t really comment in the media. Actually, this is a quasi-judicial process in which orders are issued, and they have to be complied with or gone through in a manner which has been provided as per the law,” he said.
Meanwhile, the company stated it had submitted 300-400 gigabytes of documentation to Sebi but felt the regulator may not have accessed all relevant files.
Rajesh Exports said it will resubmit the necessary documents within 15 days.
Responding to Sebi’s interim order dated June 3 alleging revenue inflation of Rs 15.15 lakh crore between FY21 and FY25, founder and chairman Rajesh Mehta rejected the claims.
He explained that Sebi confused EBITDA with revenue, inflating the figures mistakenly.
The Securities and Exchange Borad of India had issued a notice to the company for alleged misrepresentation of revenue worth Rs 15.15 lakh crore and barred Mehta from accessing the securities markets.
Sebi alleged that the company misrepresented consolidated revenues aggregating to approximately Rs 15.15 lakh crore.
This represents about 99.80 percent of the total consolidated revenue of the company for the period FY21 to FY25.
The markets regulator alleged that the company attributed about 97–99 percent of its consolidated revenue from its foreign subsidiaries, particularly Valcambi SA.
“Upon analysis of the ‘Revenue from Operations’ and ‘Profit After Tax’ of REL on standalone and consolidated basis, as disclosed in its financial statements, it is observed that significant component of REL’s consolidated operations are emanating from its subsidiaries/step-down subsidiaries,” the Sebi order said.
However, upon comparison, it was observed that “the standalone revenues of Valcambi SA constituted less than 0.50 percent of the consolidated revenues reported by GGR and REL, which appears fundamentally inconsistent with REL’s repeated assertion that Valcambi SA was the principal operating entity driving the group’s revenues,” the Sebi order said.
According to Sebi, Rajesh Exports recognised gross gold transaction values rather than only refining or processing income, without providing adequate supporting records, customer details, invoices, or accounting justification thereby potentially inflating revenues and misleading investors.
Rajesh Exports is a gold refiner and manufacturer of gold products. It exports its products to various countries around the world.
It also sells its products in wholesale and retail in India and through its own retail showrooms under the brand name ‘SHUBH Jewellers’.
