Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey refrained from discussing SEBI’s actions against Rajesh Exports, citing the ongoing quasi-judicial process that requires legal handling. Pandey emphasized that commenting on individual cases in the media is against their practice and that any issues should be addressed through legal channels. He made these statements at the India Investor Conference, adding that SEBI’s tokenisation pilot program is expected to continue for another six to nine months.
Pandey also mentioned upcoming regulations concerning bond brokers and tokenisation initiatives during his interaction with the media. This follows SEBI’s recent decision to prohibit Rajesh Exports’ promoter and CEO Rajesh Mehta from trading the company’s securities due to alleged financial irregularities and insufficient disclosures related to fund flows and related-party transactions. The company’s shares have faced significant pressure, hitting the lower circuit for the third consecutive trading session, with a decline of about 5% on Monday.
SEBI’s interim findings revealed instances of fund routing through personal accounts and related entities without proper disclosures or supporting documentation. Despite repeated requests for accurate financial statements and explanations on fund usage, the responses were deemed unsatisfactory. The regulator also noted alleged non-cooperation by statutory auditors, highlighting possible attempts to impede regulatory investigations.
The market regulator expressed concerns over inflated revenue figures, describing the irregularities as unprecedented. Consequently, Rajesh Mehta has been barred from engaging in any securities transactions of the company until further notice due to his significant control over the financial operations. Rajesh Exports has refuted the allegations, asserting the accuracy of reported revenues and attributing any discrepancies to communication issues with the regulator. The company remains confident that verified documents will support its stance.
