SEBI bars Rajesh Exports MD over revenue misstatement

India's securities regulator has taken interim action against Rajesh Exports Ltd., a major gold refiner and jewellery exporter, and its promoter, citing preliminary findings of large-scale financial misrepresentation. The Securities and Exchange Board of India (SEBI) has barred Chairman and Managing Director Rajesh Mehta from buying, selling, or dealing in the company's securities.

The order follows an investigation prompted by a shareholder complaint received in March 2024, which raised concerns over large outstanding trade receivables. SEBI's probe, covering the period from April 2020 to March 2024, alleges the company misrepresented approximately 15.15 lakh crore rupees in consolidated revenue attributed to its subsidiaries from the 2020-21 to 2024-25 financial years. The regulator stated this amount represents about 99.8 percent of such subsidiary revenues during that period.

In a filing to the Bombay Stock Exchange, Rajesh Exports denied any financial irregularities, stating its reported revenues were correct. The company attributed the situation to a communication gap with the regulator and said it is in the process of submitting all required documents for clarification....