Rajesh Exports shares hit lower circuit for third day, decline 14% since Sebi action

Shares of gems and jewellery firm Rajesh Exports Ltd (REL) hit a fresh lower circuit limit on Monday, tumbling over 14% in the past three days, after the Sebi last week passed an interim order alleging massive financial fraud by the company.

The stock tanked 4.98% to hit the lower circuit limit at ₹94.50 on the BSE.

At the NSE, the stock dropped 4.99% to hit the lower circuit limit of ₹93.80.

The stock of Rajesh Exports Ltd has tumbled 14.20% on the BSE since June 3 , following the Sebi action.

The Securities and Exchange Board of India (Sebi) on June 3 barred Rajesh Exports promoter and CEO Rajesh Mehta from dealing in the company’s securities, alleging large-scale misrepresentation of financial statements and diversion of funds.

In a 109-page interim order, the regulator found Rajesh Exports allegedly inflated its consolidated revenues by more than Rs 15 lakh crore over five years by attributing massive revenues to overseas subsidiaries, particularly Valcambi SA, despite the subsidiary’s audited standalone financial statements showing only a fraction of those amounts.

Rajesh Exports on Friday rejected allegations of inflated revenues and share placement to state-owned LIC, terming them ”speculative inferences” and asserting it is in the process of mitigating concerns raised by Sebi.

In a regulatory filing, the Bengaluru-based gold jewellery maker reiterated that Sebi’s interim order has only raised ”suspicions on certain aspects” and there are ”no conclusive adverse findings” on any of the company matters.

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