Rajesh Exports shares hit 5% lower circuit after SEBI interim order alleges ₹15 lakh crore discrepancy

Shares of India’s leading gold refiner, manufacturer and exporter, Rajesh Exports, were locked in 5% lower circuit at ₹103 apiece on the NSE, on Thursday after SEBI passed an interim order on misrepresentation of financial information between FY21 and FY25. The order came after market hours. The shares closed 2.9% higher on Wednesday at ₹109 apiece on the NSE.

The regulator received a complaint on March 11, 2024, in which a shareholder alleged potential financial misrepresentation in the company's books regarding a large sum of trade receivables for more than two years. Upon investigation, SEBI found serious and gross misrepresentation of financial statements at the group level.

Mass misrepresentation of revenue at the consolidated level

The SEBI order alleges that 99.8% of the company’s revenue between FY2020-21 and FY2024-25 was completely inflated and fake. The regulator found that the company reported completely fake numbers from its Swiss gold refinery. When auditors checked the standalone records of the Swiss subsidiary, they found the revenue to be tiny. The company misrepresented the consolidated revenue as the total revenue from subsidiaries and step-down subsidiaries. However, the auditors found that revenue from step-down subsidiaries was negligible, representing only 0.5% of the consolidated revenue. The amount of misrepresentation exceeds ₹15 lakh crore, which is nearly all of the consolidated revenue of Rajesh Exports between FY21 and FY25.

Misrepresentation of investments in gold mines in Africa

The company had also claimed in its financial statements that it has non-current investments worth ₹1,035 crore, pertaining to investments in gold mines in South Africa. “The company failed to furnish any entity-wise breakup, reconciliation statement, financial statement, valuation report or supporting documentation demonstrating the existence of alleged investment in gold mines in Africa," SEBI’s interim order said. This represents the dissemination of misleading information regarding the asset base and financial information to stock exchanges and investors.

Personal trading with the company’s funds

Another important finding of the investigation was that the company executed trades in the gold derivative segment through the personal trading account of Mr Rajesh Mehta, executive chairman of the company. The company also recorded false sales and purchase records of gold worth ₹11,400 crore with a stockbroker, which the broker denied during the investigation. The broker said that Rajesh Exports was never a client of his, and no contract or agreement was entered into with the company. However, Mr Rajesh Mehta held a personal trading account with the broker and executed trades in the gold derivatives segment. The records of the personal account were represented the company sales and purchase of gold with the broker as the vendor.

In addition, the company transferred ₹7.4 crore into Rajesh Mehta’s personal accounts, which he utilised for trading in his personal account and transferred back ₹3.4 crore to the company. The above transaction was not approved by the board, nor intimated to exchanges and investors as related party transactions.

Orders passed by SEBI

Considering the mass fraudulent activity by the promoters of the company, the regulator has asked the promoters and the company to cooperate with the investigating authority and provide the documents sought by them. Some of the information related to the investigation should be provided within 30 days of this order. The promoter Rajesh Mehta has been barred from dealing in securities of the company, either directly or indirectly.

Who owns Rajesh Exports?

According to the latest shareholding pattern for the fiscal year ended 31st March 2026, Promoters hold 54.5%, FII’s hold 14.2%, and DII’s hold 10.8%, and retail public holding is 20.3%.

Rajesh Exports share price returns

The shares of the company have been under immense selling pressure over the last few years. The stock has fallen 81% in the last 3 years and is down 34% in 2026 alone. The shares hit a record high of ₹1,029 apiece in 2023 but is currently trading 90% below the record high levels.