Panic in the stock market! Rajesh Exports accused of fake earnings of Rs 15 lakh crore, SEBI bans it

Massive Rajesh Exports Scam, SEBI ans Promoter: Bengaluru-based Rajesh Exports was counted among India’s most successful companies for years. This famous company used to refine gold and other precious metals and export jewelery across the world. Its earnings were always among the largest listed companies in the country. But the current investigation by SEBI has now raised very serious questions on this big success story.

After this investigation by SEBI, there is a huge stir in the stock market and Dalal Street. The report has revealed that the company has committed a huge scam by showing huge fake earnings of Rs 15 lakh crore. A large part of the income shown by the company does not match the actual records and documents at all. This major revelation has shattered investor confidence and led to immediate regulatory intervention.

Lower circuit in shares and fraud in revenue

After the action of SEBI, a huge fall of 5 percent was recorded in the shares of Rajesh Exports on Thursday. The stock fell straight from Rs 110.15 to Rs 104.65 on BSE and hit the lower circuit. The 52 week highest level of these shares has been Rs 239 and the lowest level has been Rs 80.11. After this negative news, there has been huge panic among investors in the stock market.

SEBI, in its June 3 order, said that 97 to 99 percent of the company’s revenue is completely inflated. SEBI member Kamlesh Chandra Varshney has described these abnormalities as very serious and unprecedented. The market regulator has immediately barred promoter Rajesh Mehta from buying, selling or dealing in shares. This step was very necessary for the protection of investors and fairness of the market.

Did not cooperate in investigation

The matter came under intense scrutiny following a shareholder complaint in March 2024. SEBI had appointed BDO India Services for the investigation from April 2020 to March 2024. But Rajesh Exports did not provide access to several key accounting systems during the investigation. This seriously affected the correct verification of many financial data and led to serious irregularities.

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Foreign companies were also investigated

SEBI has also scrutinized the financial reporting of foreign subsidiaries based in Singapore and Switzerland. The regulator has given strict orders to the company to provide all pending and necessary information within 30 days. This big scam also had a direct impact on the shares of LIC, which has 10 percent stake in the company. LIC shares also fell by about 1 percent due to this negative news.