Sebi bars Chairman Mehta from trading in Rajesh Exports shares

Mumbai: The Securities and Exchange Board of India (Sebi) Wednesday barred Rajesh Exports chairman Rajesh Mehta from dealing in the shares of the company, after a forensic probe revealed alleged revenue inflation and routing of company funds through promoter’s personal accounts over a period of at least four years.

In an ex-parte interim order, the regulator alleged that the Bengaluru-based gold refiner and exporter presented a misleading picture of its financial health over several years. Mehta could not be immediately reached for comments.

Pending completion of the investigation, SEBI has also directed the company to cooperate with the investigating officer, ordered a fresh forensic audit and referred the conduct of the company’s auditors for the offending years to the National Financial Reporting Authority (NFRA) for appropriate action.

On March 11,2024, Sebi received a complaint from a shareholder of Rajesh Exports alleging potential financial misrepresentation in the books of the company with respect to large sum of trade receivables outstanding for more than two years.

Sebi then conducted an investigation for the period between April 1, 2020 and March 31, 2024.

Subsequently, the regulator appointed a forensic auditor, which found that around 97-99% of Rajesh Exports’ consolidated revenue originated from overseas subsidiaries and step-down subsidiaries, mainly in Switzerland.