The Bombay Stock Exchange (BSE) has requested clarification from gold jewellery manufacturer Rajesh Exports Ltd following Enforcement Directorate (ED) searches at various Bengaluru-linked locations. The ED conducted searches at nine premises associated with the company under the Foreign Exchange Management Act (FEMA). Rajesh Exports, in a regulatory filing, stated that it was yet to respond to the exchange’s query. The company’s response is awaited regarding recent news on ED searches after SEBI flagged alleged financial misstatements.
The company, Rajesh Exports, is facing increasing legal and regulatory hurdles. It is already under scrutiny due to allegations of significant financial fraud raised by the Securities and Exchange Board of India (SEBI). SEBI has ordered a fresh forensic audit into the company’s affairs as part of its ongoing probe. These allegations have raised concerns among investors and market participants regarding the company’s financial practices and governance standards.
Rajesh Exports Founder and Chairman, Rajesh Mehta, has refuted claims of fund diversion or any misconduct. He assured full cooperation with the forensic audit initiated by SEBI and indicated no intention to challenge the interim order from the market regulator. The ED’s searches under FEMA and the SEBI investigation have intensified regulatory scrutiny on Rajesh Exports, with investors closely watching for further developments in the case.
