Sebi Orders Ban on Rajesh Exports Chief Over Alleged Revenue Inflation

Rajesh Exports, a Bengaluru-based gold refiner, has been embroiled in a controversy after markets regulator Sebi banned its chief, Rajesh Mehta, for inflating the company’s revenues over several years to induce investors to invest in the stock. The company has claimed that there was a communication gap with Sebi that led to the regulatory decision.

Sebi Orders Ban on Rajesh Exports Chief Over Inflated Revenue

The Sebi investigation was initiated after a shareholder of the company complained to the regulator, alleging potential financial misrepresentation in the company’s books. On Thursday, the stock price of Rajesh Exports closed at the 5% lower circuit levels on BSE and NSE.

Sebi’s Interim Order

On June 3, Sebi in its interim order said that investigations showed between FY21 and FY25, Rajesh Exports had manipulated its revenues to show the group’s consolidated aggregate number at Rs 15.2 lakh crore, for these years. In its 109-page order, Sebi said that over these five years, it misrepresented 99.8% of the total consolidated revenue.

Market Impact and Details

• The stock price of Rajesh Exports closed at Rs 104.6 on the BSE and Rs 103.9 on the NSE.
• The company’s consolidated revenue for FY26 was Rs 7.8 lakh crore, while its India operations reported a revenue of nearly Rs 9,200 crore.
• Valcambi SA, the company’s fully-owned Switzerland subsidiary, held through step-down arms, is the world’s largest refiner of precious metals like gold, silver, and platinum.

Key Takeaways

• Rajesh Exports has been banned by Sebi for inflating its revenues over several years.
• The company’s consolidated revenue for FY26 was Rs 7.8 lakh crore, while its India operations reported a revenue of nearly Rs 9,200 crore.
• Valcambi SA, the company’s Switzerland subsidiary, is the world’s largest refiner of precious metals.

FAQs

What is the reason behind Sebi’s ban on Rajesh Exports chief?

Sebi has banned Rajesh Exports chief, Rajesh Mehta, for inflating the company’s revenues over several years to induce investors to invest in the stock.

What is the consolidated revenue of Rajesh Exports for FY26?

The consolidated revenue of Rajesh Exports for FY26 is Rs 7.8 lakh crore.

What is the role of Valcambi SA in Rajesh Exports?

Valcambi SA, the company’s fully-owned Switzerland subsidiary, is the world’s largest refiner of precious metals like gold, silver, and platinum.

Conclusion

Rajesh Exports has been embroiled in a controversy after Sebi banned its chief, Rajesh Mehta, for inflating the company’s revenues over several years. The company has claimed that there was a communication gap with Sebi that led to the regulatory decision. As the situation unfolds, investors are advised to closely monitor the developments and take necessary steps to protect their investments.