Shares of Rajesh Exports dropped by 5% for the second consecutive day after SEBI restricted the company’s promoter and CEO, Rajesh Mehta, from trading its securities due to alleged financial irregularities. The stock hit lower circuit limits, falling 4.99% on the NSE and 4.97% on the BSE.
The decline followed SEBI’s interim order citing financial statement misrepresentation, fund diversion, and insufficient disclosures on related-party transactions. The investigation revealed fund routing through personal accounts without proper documentation.
SEBI highlighted the lack of cooperation from the company’s auditors and raised concerns about inflated revenues, amounting to nearly 97-99% of the company’s total revenue. The regulator termed the alleged irregularities as “egregious and unheard of.”
The order restrained Mehta from engaging in any securities transactions of the company, emphasizing his significant control over its financial operations. In response, Rajesh Exports refuted the allegations, asserting accurate revenue reporting and attributing the discrepancies to a communication gap with the regulator.
