Rajesh Exports SEBI Case Explained

Names like Rajesh Exports, Valcambi and Shubh Jewelers recently came into limelight when SEBI raised serious questions over the company’s financial reporting. According to the regulator, a large portion of the approximately ₹15.15 lakh crore revenue reported between FY21 to FY25 is being examined. After this development, there was a sharp decline in the shares of Rajesh Exports. In this article, we will understand Rajesh Exports, its gold refining and jewellery business, SEBI’s allegations and the key facts of the entire case in simple language.

Why is Rajesh Exports in the News? 

Rajesh Exports made headlines when SEBI issued an interim order against the company. The regulator has raised objections regarding the revenue reported and certain financial transactions undertaken between FY21 and FY25. Following the order, the stock came under pressure, and Rajesh Mehta has been barred from trading in the company’s shares for the time being.

What did the SEBI investigation reveal?

Issue	SEBI’s allegations
Revenue Reporting	Questions raised over ₹15.15 lakh crore revenue
Revenue Inflation	Accusation of inflating figures to the 97%-99% range.
Financial Records	Many records and documents were found to be incomplete.
Fund Routing	Allegation of some funds passing through personal accounts.
African Gold Mine Investment	Insufficient documents were found to support the investment claim.
Investigation Cooperation	Accusation of not fully cooperating with the investigation

Sharp Drop in Share Price

Heavy selling was observed in Rajesh Exports’ shares following a SEBI order. The stock initially hit the lower circuit, and subsequently, a decline of over 14% was recorded within just a few days. This further heightened investor concerns.

How the SEBI Investigation Started ?

Let’s walk through the major events that shaped the Rajesh Exports investigation.

• A March 2024 Complaint Sparked the Probe: It all started when SEBI got a tip-off about massive trade receivables sitting on Rajesh Exports’ books. The complaint pointed out huge unpaid amounts that had been pending for a long time, raising serious doubts about whether the company’s financial numbers were actually real.
• Forensic Audit Ordered: Realizing things looked fishy, SEBI stepped in and hired BDO India Services to run a deep forensic audit. The investigators went through every single transaction looking for red flags from April 2020 all the way to March 2024.
• Global Offshoots Under the Scanner: The heat wasn’t just on their Indian operations. Since a massive chunk of their business runs through overseas connections, SEBI expanded the investigation to track the cash flow and financial reporting of the company’s subsidiaries in Singapore and Switzerland.

The Valcambi Connection: Why the Swiss Gold Refinery Is at the Centre of the Case 

Valcambi is a prominent Switzerland-based precious metals refinery that was acquired by Rajesh Exports in 2015 for approximately $400 million. It is considered one of the company’s most significant overseas assets.

Why is Valcambi Important in This Case?

Valcambi has featured prominently in the SEBI investigation because a substantial portion of Rajesh Exports’ total revenue was attributed to its foreign subsidiaries. However, the regulator has raised questions regarding significant discrepancies between the revenue reported at the group level and the available financial data for Valcambi. Consequently, Valcambi has become a crucial element of this entire matter.

African Gold Mine Investment Claims Under Scrutiny 

• Investment Claim Under Scrutiny: SEBI’s investigation has also raised questions regarding the company’s claim of investing in an African gold mining project. According to the regulator, certain essential documents and details related to this investment were not provided.
• Why Does It Matters: Records pertaining to ownership, valuation, and transactions are crucial for verifying significant foreign investments. SEBI states that the available information does not allow for independent verification of these investments; hence, the matter remains part of the investigation.

The Affluence Shares Transaction Controversy 

• ₹11,000 Crore Deal Under Scrutiny: Affluence Shares and Stocks has also been mentioned in SEBI’s interim order. According to reports, Rajesh Exports had recorded transactions worth over ₹11,000 crore with this company.
• Where Did the Dispute Begin?: During the investigation, Affluence Shares reportedly stated that Rajesh Exports was not its client. This revealed a discrepancy between the records of the two parties, prompting SEBI to include these transactions in its investigation.

LIC’s Big Bet on Rajesh Exports 

• LIC Holds a Significant Stake: LIC has long been an investor in Rajesh Exports. As of March 2026, LIC held approximately a 10.8% stake in the company, making it one of the largest domestic institutional investors.
• Mutual Funds Stayed Away: Interestingly, while LIC increased its stake, most mutual funds refrained from investing in the company. In recent years, their holding dropped to near-zero levels, whereas LIC maintained its investment.

Rajesh Exports’ Response to SEBI’s Allegations 

• The Company’s Pushback: Rajesh Exports has openly rejected SEBI’s claims, insisting their reported revenue numbers are completely accurate. The company argues that the whole dispute boils down to a misunderstanding and a misinterpretation of financial data during the investigation.
• Their Side of the Story: In its defense, Rajesh Exports explained that the revenue doubts mainly stem from how data related to Valcambi was calculated. They have confirmed that they are putting together a detailed response for SEBI and will share all the necessary paperwork to clear the air.
• Where Things Stand: Right now, SEBI’s order is just interim (temporary). The company will get a fair chance to present its case, and the final picture will only emerge once the investigation is fully wrapped up.

What is Rajesh Exports? 

Rajesh Exports is a name frequently heard in the context of the gold business or jewellery exports. Based in Bengaluru, the company’s operations span the entire value chain from refining gold to delivering the finished product to the market. The company also owns the Swiss refinery Valcambi, which it acquired in 2015. In India, it operates its jewellery stores under the brand name Shubh Jewellers.

Description	Information
Company Name	Rajesh Exports Limited
Year Of Establishment	1989
Founder	Rajesh Mehta and Prashant Mehta
Core business	Gold Refining, Jewellery Manufacturing & Export
Retail brand	Shubh Jewellers
Major Acquisitions	Valcambi (Switzerland)
Listing	NSE and BSE
Business Reach	India and several international markets

Impact on Investors and Shareholders 

• Share Price Under Pressure: Heavy selling was observed in Rajesh Exports’ shares following SEBI’s interim order. The stock fell by more than 14% within a few days, shaking investor confidence.
• Concerns Over Wealth Erosion: The sharp decline in the share price impacted the company’s market valuation and shareholder wealth. SEBI has also expressed concern regarding potential losses for investors.
• Impact on Retail Investors: Small investors holding stakes in the company face the major challenge of uncertainty. Volatility in the stock is likely to persist until the investigation concludes.
• Impact on Institutional Investors: Institutional investors like LIC hold significant stakes in the company. Meanwhile, the fact that most mutual funds had stayed away from this stock for several years has drawn further attention to the matter.

Key Lessons for Stock Market Investors 

• Don’t rely solely on high revenue: Big sales numbers often hide the truth. Everything depends on actual cash flow and profits, so judging a stock just by its top-line revenue is a huge mistake. 
• Keep an eye on receivables: Watch pending customer bills very closely. If payments stay stuck for too long, it is a direct sign of trouble inside the company’s daily operations. 
• Understand the activity of institutional investors: It pays to watch what the big players are doing. In the case of Rajesh Exports, major mutual funds had deliberately stayed away from the stock for several years, and retail investors should never ignore such red flags.
• Documents and disclosures are crucial: For any publicly listed company, transparency is just as critical as its core business performance. Whenever a company provides incomplete information or delayed disclosures, it naturally triggers red flags across the market.

What Happens Next in the Rajesh Exports Investigation? 

• Fresh Forensic Audit to Continue: SEBI has ordered a fresh forensic audit into the company’s accounts, which means experts will now do a detailed, deep-dive review of all financial records and transaction logs.
• Company Required to Submit Response: Rajesh Exports and its promoters have been given a formal opportunity to explain their side of the story and submit the required disclosures before SEBI.
• Further Action May Follow: Depending on what the final investigation uncovers, SEBI reserves the right to issue tougher directives, impose fresh restrictions, or take strict regulatory actions.
• Final Outcome Awaited: Since SEBI’s current findings are strictly preliminary, a final ruling will only be passed after thoroughly reviewing the new forensic audit and the company’s official response.

Conclusion

For years, Rajesh Exports was counted among India’s major gold companies, but the ongoing investigation has raised serious questions regarding its financial disclosures. All eyes in the market are now on the company’s response, the forensic audit, and SEBI’s next course of action. The full picture will only emerge once the investigation concludes.

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