SEBI Alleges Rajesh Exports Inflated Revenue by ₹15.15 Trillion; Company and Promoter Barred from Securities Market

Mumbai, June 3, 2026: India's capital markets regulator, the Securities and Exchange Board of India (SEBI), has issued a major interim order against jewellery manufacturer Rajesh Exports, alleging large-scale financial misrepresentation and diversion of company funds. The regulator has temporarily barred the company and its promoter, Rajesh Mehta, from participating in the securities market while a detailed investigation continues.

According to SEBI's findings, Rajesh Exports allegedly overstated its consolidated revenue by approximately ₹15.15 trillion ($158.3 billion) over multiple financial years. The regulator claims that the company relied heavily on financial figures attributed to overseas subsidiaries, particularly Switzerland-based Valcambi SA, without providing adequate disclosures to investors and the public.

Revenue Misrepresentation Through Overseas Subsidiaries

SEBI's order states that between financial years 2020-21 and 2024-25, nearly 97% to 99% of Rajesh Exports' consolidated revenue was reported through overseas subsidiaries. Among these entities, Valcambi SA was presented as the group's principal operating business.

However, the regulator noted significant discrepancies between the revenue reported in Rajesh Exports' consolidated accounts and the financial information available in Valcambi SA's standalone audited statements. According to SEBI, Valcambi disclosed only minimal standalone revenues despite being portrayed as the primary contributor to the group's business operations.

The market regulator alleges that approximately 99.8% of the revenue reported from subsidiaries during the period was not adequately substantiated, resulting in a cumulative revenue inflation of ₹15.15 trillion.

Questionable Transactions With Third-Party Entity

SEBI also identified alleged irregularities involving transactions with Affluence Shares and Stocks Private Limited. Rajesh Exports reportedly recorded sales worth ₹114.87 billion and purchases worth ₹114.88 billion with the entity.

However, during the investigation, Affluence allegedly denied carrying out any such transactions with Rajesh Exports. The regulator suspects that these entries may have been non-genuine transactions used to artificially increase turnover figures without corresponding economic activity.

According to the order, the transactions may have been linked to personal derivative trading activities of promoter Rajesh Mehta.

Alleged Diversion of Company Funds

The investigation further revealed concerns regarding the movement of company funds. SEBI alleged that approximately ₹3.39 billion was transferred from company accounts to accounts linked to promoter Rajesh Mehta for personal purposes, including derivative trading activities.

The regulator stated that these transactions were executed without obtaining necessary approvals from the company's board of directors or audit committee. Furthermore, the transactions were allegedly not disclosed as related-party transactions as required under regulatory norms.

In total, SEBI claims that approximately ₹9.26 billion was routed through various channels without proper approvals, disclosures, or governance oversight.

Impact on Shareholders

SEBI has estimated that the alleged financial misrepresentation and diversion of funds caused significant damage to investors. The regulator estimates shareholder wealth erosion of approximately ₹127.26 billion, affecting both institutional and retail investors.

The order highlights concerns over transparency, corporate governance, and investor protection, emphasising the importance of accurate financial disclosures in maintaining confidence in India's capital markets.

Market Implications

The case is being closely watched by market participants, corporate governance experts, and investors due to its scale and potential implications for listed companies. If the allegations are ultimately proven, the matter could become one of the most significant accounting and disclosure-related enforcement actions in India's corporate history.

Rajesh Exports and its promoter have been restrained from accessing the securities market pending the completion of SEBI's investigation. Further regulatory actions may follow based on the outcome of the ongoing proceedings.

Investors and analysts are expected to closely monitor developments as SEBI continues its examination of the company's financial reporting practices, overseas subsidiary disclosures, and related-party transactions.