08 June,2026 12:31 PM IST | Mumbai | mid-day online correspondent
Rajesh Exports faces SEBI action as stock hits lower circuit for third day. File Pic
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Monday declined to comment on the ongoing action against Rajesh Exports. Speaking to reporters at the India Investor Conference, he said regulatory cases cannot be discussed publicly, reported IANS.
"As a matter of principle, we do not comment on individual cases in the media," he said, adding that such matters are part of a "quasi-judicial process" where decisions must be followed or challenged through legal channels, erported the news agency.
He further clarified that SEBI would not make any case-specific remarks while the process is ongoing.
The remarks come shortly after SEBI barred Rajesh Exports promoter and CEO Rajesh Mehta from dealing in the company's securities.
The interim order alleges serious issues, including:
According to SEBI, repeated chances were given to the company to explain financial statements and fund usage, but responses were found unsatisfactory, reported the news agency.
The regulator also raised concerns about alleged non-cooperation from statutory auditors, stating that audit working papers were not shared despite assurances.
In its interim findings, SEBI said investigations revealed that funds may have been routed through personal accounts and related entities without proper disclosure or documentation.
It further observed that 97-99 per cent of the company's revenue appeared to be inflated, calling the alleged irregularities "egregious and unheard of," reported the news agency.
SEBI also stated that Rajesh Mehta had substantial control over financial operations and therefore restrained him from buying or selling company securities until further orders.
Following the SEBI order, Rajesh Exports shares came under strong pressure.
The stock hit the lower circuit for the third consecutive session. On Monday, it touched an intraday low of Rs 94.50 on the BSE which marked an approximate 5 per cent fall in a single day.
The stock had already declined in the previous two sessions after the interim order was issued, as per IANS.
Rajesh Exports has rejected all allegations made by SEBI, reported IANS.
In an exchange filing, the company said its revenues were correctly reported and suggested there may be a communication gap with the regulator. The company also expressed confidence that proper and authenticated documents would support its position and clear the allegations.
Apart from the Rajesh Exports issue, Pandey also spoke about SEBI's upcoming initiatives.
He said the regulator's tokenisation pilot programme is expected to take another six to nine months before further progress. He also mentioned that new rules related to bond brokers and digital asset tokenisation are in the pipeline, though no detailed timeline was provided.
(With IANS Inputs)
