Shares of India’s leading gold refining to retailing value chain company, Rajesh Exports, will remain in focus on Thursday morning after SEBI passed an interim order on misrepresentation of financial information provided between FY21 to FY25. The shares closed 2.9% higher on Wednesday at ₹109 apiece on the NSE.
SEBI’s interim order was passed after the regulator received a complaint on March 11, 2024, in which the 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.
_Here’s what SEBI found _
Mass misrepresentation of revenue at the consolidated level
SEBI alleges that 99.8% of the company’s revenue between 2021 and 2025 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-based subsidiary, they found the revenue to be tiny. The company misrepresented the consolidated revenue as total from subsidiaries and step-down subsidiaries. However, the auditors found that step-down subsidiaries were negligible, representing only 0.5% of consolidated revenue, meaning 99% of consolidated revenue was inflated and fake. The amount of misrepresentation exceeds ₹15 lakh crore, which is the total of the consolidated revenue of Rajesh Exports between FY21 and FY25.
Misrepresentation of investments in gold mines in Africa
Upon further investigation of the standalone financial statements of Rajesh Exports, the company claimed to have other non-current investments worth ₹1,035 crore. For which the company reported that the amount pertained 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, said SEBI’s interim order. 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, no contract or agreement was entered into with the company. However, Mr Rajesh Mehta held a personal trading account with the brokers and executed trades with the broker in the gold derivatives segment. The records of which company represented the 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 is barred from dealing in securities of the company Rajesh Exports, 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 are under immense selling pressure throughout the long-term period. On a five-year basis, the shares are down 79%, on a three-year basis, the shares are down 81% and on a YTD basis, the shares are down 34% in 2026 alone. The shares made a record high of ₹1,029 apiece in 2023 and currently trade 99% away from the record high levels.