Shares of Rajesh Exports Limited hit a lower circuit of 5% on Thursday, 4 June, after market regulator SEBI banned the company’s promoter and CMD Rajesh Mehta from dealing in its shares. The stock touched a day low of Rs 103.92 on NSE, triggered by an interim order alleging large-scale manipulation of the company’s books.

The SEBI order, passed on 3 June, alleged that Rajesh Exports inflated its revenues by roughly Rs 15.15 lakh crore over five years from FY21 to FY25. 

That figure reportedly accounted for 99.8% of revenues attributed to overseas subsidiaries. In plain terms, nearly all of the company’s reported income was called into question.

The regulator found that 97% to 99% of consolidated revenue was traced to foreign subsidiaries, mainly Switzerland-based Valcambi SA. 

But when auditors tried to verify those numbers, the company refused full access to its books, withheld records and only partly cooperated with forensic investigators.

SEBI also flagged transactions with an entity called Affluence Shares and Stocks Private Limited, recording Rs 11,487 crore in sales and Rs 11,488 crore in purchases. Affluence denied any such dealings ever took place. 

The regulator called these non-genuine entries, allegedly used to inflate turnover without any real economic activity behind them.

The shareholding picture adds another dimension to the fallout. LIC holds a 10.8% stake in the company. Around 1.94 lakh small retail investors, those with share capital up to Rs 2 lakh, collectively owned 14.13% as of the March quarter. Promoters held 54.55%.

SEBI also forwarded its order to the National Financial Reporting Authority for possible action against the company’s statutory auditors, BSD & Co.

At 10:36 am, shares were trading at Rs 103.92 on NSE, down 4.99% from the previous close of Rs 109.38. The stock has fallen sharply in 2026 and has shed about 90% from its all-time high.

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