Rajesh Exports rejects Sebi claims; LIC stake 10.8%

What Rajesh Exports told exchanges

Rajesh Exports has rejected allegations of inflated revenues and any share placement to state-owned Life Insurance Corporation of India (LIC), calling them “speculative inferences”. In a regulatory filing, the Bengaluru-based gold jewellery maker said Sebi’s interim order raises “suspicions on certain aspects” and does not contain “conclusive adverse findings”. The company said it is working to mitigate concerns flagged by the regulator. It also pushed back against what it described as “incorrect perceptions” created by some media reports and social media posts. Rajesh Exports said it is engaged in “transparent and absolutely straightforward operations”. The company stated that neither it nor its personnel are involved in “any wrongdoings or misrepresentations”.

Sebi’s interim order and the scope of the probe

Sebi has issued an interim order running into 109 pages against Rajesh Exports and its promoter Rajesh Mehta. The regulator’s interim action restrains the company and its promoter from participating in the securities market pending completion of the investigation. Sebi’s order refers to alleged large-scale financial misrepresentation, disclosure lapses and non-cooperation with the investigation. Based on preliminary findings and a forensic review, Sebi said there is prima facie evidence suggesting that about 97% to 99% of the company’s revenue may have been inflated. The regulator described the alleged irregularity as “egregious and unheard of”. Sebi also said 97% to 99% of Rajesh Exports’ consolidated revenue came from overseas subsidiaries, particularly Switzerland-based Valcambi SA. The order also noted that the company systematically did not disclose its subsidiaries’ financials in the public domain.

The company’s key rebuttal: Valcambi and revenue reporting

Rajesh Exports said a major point around its revenues has been misinterpreted and is “totally misplaced”. It maintained that the huge revenues in consolidated financials are primarily from Switzerland-based Valcambi. In a press release shared with exchanges, Rajesh Exports said the revenues stated in its financial statements are correct and there is “no over stating of revenues”. It argued that the issue “primarily emerged due to a misunderstanding” because Sebi considered Valcambi’s EBITDA instead of its revenue. According to the company, this led to the conclusion that there is a difference of about 97% in reported revenue. Rajesh Exports described the matter as a confusion and a “communication gap” between the regulator and the company. It said it expects to clarify the issue by presenting the required documents.

Alleged scale of misrepresentation cited by Sebi

Sebi’s interim order alleged that revenues attributable to subsidiaries were misrepresented by about ₹1,515,000 crore between FY 2020-21 and FY 2024-25. The regulator said this represented about 99.8% of such revenues over the period. Sebi also observed that the disclosures appeared to present an inflated and misleading picture of the group’s operational scale and financial health to investors. The company has disputed these conclusions and has said the order is interim. Rajesh Exports emphasised that Sebi has not announced any fine, penalty, or other coercive action in the interim order. It said this, in its view, indicates there are no “conclusive adverse findings” at this stage.

LIC stake and other investors in the spotlight

The controversy has drawn attention to the company’s shareholding, particularly LIC’s exposure. As per shareholder data for the March 2026 quarter, LIC holds around 10.80% of Rajesh Exports. The filing and related reports also noted that this position has been maintained without a single share bought or sold since at least September 2023. Other data cited in reports said LIC has maintained a stake in the 10.80% to 11.18% range since at least March 2023. Reports also said LIC is the sole domestic institutional investor (DII) with exposure in Rajesh Exports, with banks and mutual funds having nil holding.

Market moves: lower circuit and valuation markers

Rajesh Exports shares hit a 5% lower circuit of ₹104.65 on the BSE following the developments. At around ₹104 per share, the company’s market capitalisation was cited at about ₹3,068 crore. Using the March 2026 shareholding pattern and the price cited, LIC’s holding of 3,18,75,887 shares (10.8%) was valued at ₹333.58 crore in one set of figures, while another report rounded it to about ₹340 crore at current prices. Retail investors were reported to hold 4,17,32,856 shares, representing a 14.13% stake valued at ₹436.73 crore. A combined wealth-at-risk figure of about ₹770 crore was cited for LIC and retail investors based on these valuations. One report also noted the stock has fallen 49% in the last one year and is down about 90% from its peak level of February 2023.

What the shareholding data shows beyond LIC

Beyond LIC, foreign portfolio investors (FPIs) were reported to collectively hold 14.19% of Rajesh Exports, with a total of 75 FPIs listed. Named investors included Bridge India Fund with 8.46% and Schwab Fundamental Emerging Markets Equity ETF with 2.7%. Another report noted that LIC and FPIs together hold about 25% of the company. The company has not commented on individual investor positions in the statements cited, but has disputed allegations around share placement. Rajesh Exports also stated it has not undertaken equity placements with domestic institutions. It said it has not raised funds through public offerings since its initial public issue in 1995.

Political reactions and the company’s response to public commentary

Opposition leaders have raised questions about LIC’s exposure and cited Sebi’s interim findings as a basis for concern. Reports referenced the alleged misrepresentation figure and described an ongoing investigation, with a final report awaited. Rajesh Exports, in turn, said media and social media postings referring to “scam, fraud, inflated revenues, placement of shares to LIC” are “totally incorrect, out of place and speculative”. The company said it “outright rejects” these inferences. It also said it is cooperating with Sebi and furnishing records sought during the investigation. Rajesh Exports indicated it would issue a media release to address and settle what it described as unnecessary speculation.

Key facts at a glance

Investor exposure snapshot (reported)

Why this matters for markets and governance

The case has become a test of disclosure standards around consolidated revenue, subsidiary financials, and investor interpretation of overseas operations. Sebi’s interim order focuses on whether the company’s reported scale accurately reflected underlying operations, particularly in overseas entities. The company’s rebuttal centres on how Valcambi’s contribution was assessed and whether a misunderstanding over EBITDA versus revenue shaped the regulator’s interim view. With LIC holding 10.8% and retail investors accounting for 14.13% as per cited data, the matter has direct relevance for institutional and household investors. The interim nature of the order means the investigation remains open and the outcome will depend on documents and explanations submitted. Rajesh Exports has said it is providing all required records and expects to resolve the issues after review. Sebi’s next steps and any final findings will be crucial for determining whether any enforcement action follows.