Rajesh Exports Locked in Lower Circuit Again as Chairman’s Defence of SEBI Allegations Fail to Convince Markets

Mumbai, June 5: Rajesh Exports share price hit the 5% lower circuit for a second straight session on Friday as investors continued to react to allegations by market regulator SEBI, despite the company chairman asserting that its financial disclosures were accurate and complied with accounting norms. 

The stock has come under intense selling pressure since the Securities and Exchange Board of India (SEBI) issued an interim order alleging that the company misrepresented revenues worth about ₹15.15 lakh crore over several years. The regulator has also barred the company and Chairman Rajesh Mehta from accessing the securities market pending further investigation. 

Chairman rejects SEBI’s allegations 

A report quoted Chairman Rajesh Mehta strongly disputing the findings and maintaining that the company’s financial reporting was accurate. 

 The stock has slid 17% over a week versus Nifty 50 declining 0.8% during the period. Source: NSE 

Mehta said the alleged discrepancy stemmed from differences in the treatment of standalone and consolidated financial statements. According to him, SEBI’s observations did not adequately account for the revenues generated by the company’s Swiss subsidiary, Valcambi SA, one of the world’s largest precious metals refiners. 

Company cites communication gap 

In a statement issued on Thursday, Rajesh Exports rejected allegations of any financial impropriety, maintaining that its reported revenues were accurate and suggesting that the dispute stemmed from a misunderstanding between the company and the market regulator.  

“The revenues declared by the company are correct, and there is no over-stating of revenues. There seems to be some type of communication gap and confusion between Sebi and the company,” Rajesh Exports said in a BSE filing. 

Investors remain unconvinced 

Despite the company’s defence of SEBI allegations, market sentiment remained weak, with the stock locked at its lower circuit limit for a second consecutive trading session. 

Investors appeared concerned about the scale of the allegations and the potential implications of an ongoing regulatory probe. The episode has raised questions around corporate governance and financial transparency, prompting many market participants to reduce exposure to the stock until greater clarity emerges. 

The continued decline suggests that investors are waiting for more definitive developments from SEBI before reassessing the company’s prospects. 

Focus shifts to regulatory proceedings 

The market’s attention is now firmly on the next steps in the regulatory process. SEBI’s investigation is expected to examine the company’s disclosures in greater detail and determine whether any violations of securities laws occurred. 

For Rajesh Exports, restoring investor confidence may depend not only on the outcome of the investigation but also on its ability to convincingly address concerns surrounding its reporting practices. 

Until then, analysts expect the stock to remain under pressure, with regulatory uncertainty likely to outweigh management’s assurances regarding the accuracy of its financial statements. 

Source

• https://www.nseindia.com/get-quote/equity/RAJESHEXPO/Rajesh-Exports-Limited