The Securities and Exchange Board of India (SEBI) has barred the promoter of Rajesh Exports from accessing the securities market after alleging large-scale misrepresentation of the company’s revenue figures.
In an interim order, SEBI said the Bengaluru-based gold exporter and jewellery manufacturer overstated its revenue by more than ₹15 lakh crore over multiple financial years. According to the regulator, the company reported sales transactions that lacked genuine economic substance, resulting in an inflated picture of its business operations and financial performance.
SEBI’s investigation found that a significant portion of the reported turnover came from transactions involving related entities and circular trading arrangements. The regulator said these transactions appeared to have been structured mainly to inflate reported revenues rather than reflect actual business activity.
The market watchdog stated that such disclosures may have misled investors, analysts and shareholders by portraying Rajesh Exports as a much larger business than it actually was. SEBI stressed that accurate financial reporting is essential for maintaining investor confidence and ensuring fair functioning of capital markets.
As part of the interim action, the promoter has been restrained from buying, selling or dealing in securities until further orders. SEBI has also launched a detailed investigation to examine the extent of the alleged violations and determine whether other individuals or entities were involved.
Rajesh Exports is one of India’s largest gold refining and jewellery companies and has often reported among the highest revenues in the corporate sector. Its turnover figures had frequently drawn attention because of their scale relative to the company’s profitability.
SEBI clarified that the interim order is based on preliminary findings and does not amount to a final determination of wrongdoing. The company and its promoter will have an opportunity to present their responses during the investigation.
The case has attracted significant attention due to the scale of the alleged revenue overstatement. Investors and market participants will closely monitor further developments as SEBI’s probe progresses and more details emerge about the company’s financial reporting practices.
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