Rajesh Exports-SEBI row: 15-day refiling plan, 2026

What triggered the latest dispute

Rajesh Exports Limited (REL), a Bengaluru-based gold refiner and jewellery exporter, has challenged allegations made by the Securities and Exchange Board of India (SEBI) in an interim order linked to suspected revenue misrepresentation. The proceedings were initiated after a shareholder complaint flagged potential financial misrepresentation, with a focus on large outstanding trade receivables. SEBI’s action culminated in an ex parte interim order issued on Wednesday, June 3, 2026. The order, reported to run 109 pages, also directed further investigative steps, including a fresh forensic audit.

Rajesh Mehta’s response: “communication gap” and missing files

Founder and Chairman Rajesh Mehta told PTI that the company believes the interim order stems from a fundamental misunderstanding of accounting and confusion over document submissions. He said REL had already shared between 300 GB and 400 GB of records with SEBI. Mehta argued that the regulator may not have been able to locate the correct documents from the material provided, given the volume. He added that the company would resubmit all requested documents within 15 days to resolve the matter.

Company’s formal stand: revenues “correct”, no overstatement

After the interim order, Rajesh Exports issued an official statement on Thursday, June 4, 2026. It said the revenues declared by the company were correct and there was “no overstating of revenues.” The company described the situation as a communication gap and confusion between SEBI and the company, and said it was in the process of clarifying all aspects by submitting required and relevant documents. The company also emphasised that the order was interim and that no adverse conclusion had been reached.

SEBI’s key allegations in the interim order

SEBI alleged “massive financial misrepresentation” spanning five financial years, and cited reported revenues of ₹1,515,000 crore (₹15.15 lakh crore) over the period referenced in coverage as FY21 to FY25. The interim order stated that the matter drew attention partly because investigators faced difficulties examining records. SEBI said REL failed to provide access to ERP systems, books of accounts, journal dumps, and key records related to overseas subsidiaries. The regulator also pointed to inconsistent submissions and periods of non-cooperation, saying auditors had to work with incomplete information.

Subsidiary disclosures and Valcambi SA reference

SEBI’s order noted that REL had not uploaded financial statements of any of its subsidiaries or step-down subsidiaries (SDSs) on its website. The regulator said that by failing to provide these statements for significant entities, including Valcambi SA, REL had shielded key revenue-generating components from scrutiny by investors, auditors, and regulators. This issue forms part of SEBI’s broader concern around the verifiability of consolidated operations and overseas-linked transactions.

The document trail dispute: 300-400 GB vs “not received”

A central fault line is the disagreement over whether SEBI received the documents REL says it provided. Mehta told PTI and later NDTV Profit that the company had already sent up to 400 GB of documents and that bulk submissions may not have been fully reviewed or correctly mapped. In contrast, SEBI’s interim order stated that, as of the date of the order, no such documents had been received, indicating a lack of cooperation. Mehta’s position is that the confusion occurred because the regulator could not find the right files among “lakhs” of pages of material.

Affluence Shares and Stocks: Mehta disputes SEBI’s reading

On transactions involving Affluence Shares and Stocks Pvt. Ltd., which SEBI said had been denied by the entity, Mehta told NDTV Profit that the company’s clarification had not been considered correctly. He said the trade was “absolutely correct,” spread over four years with Affluence, and that the company had shared information and submitted every document related to Affluence to SEBI. He also stated that no personal account was used for trading with Affluence, and rejected any suggestion of misrepresentation.

Market access restrictions and ongoing investigation

SEBI’s interim order barred Rajesh Exports and its promoter-chairman Rajesh Mehta from accessing the securities market. Mehta has also been restrained from buying, selling, or dealing in Rajesh Exports shares until further orders. The company has been directed to provide documents and cooperate fully with investigators. SEBI ordered a fresh forensic audit after the earlier audit could not be completed satisfactorily due to limitations in access to records, according to the interim order.

Key facts at a glance

Why this matters for investors and disclosures

The interim order and the company’s rebuttal place the spotlight on document accessibility, subsidiary disclosures, and the practical challenges of verifying cross-border operations. SEBI’s order suggests that missing or incomplete records can constrain forensic work and weaken the ability of auditors and regulators to validate reported numbers. Rajesh Exports, on the other hand, is framing the dispute as one of accounting interpretation and document-tracking errors rather than substantive misstatement.

What happens next

Rajesh Exports has said it will resubmit the requested documents within 15 days and continue cooperating with SEBI. The investigation is ongoing, and SEBI has already directed a fresh forensic audit. Further regulatory directions, findings from the audit process, and the company’s submissions will determine the next procedural steps under the interim framework.