SEBI confirms Rajesh Exports curbs in fresh 2026 order

Oct 15, 2026•3 min read

Rajesh Exports Ltd

RAJESHEXPO

Ask Iris

What SEBI said in the October 14 order

The Securities and Exchange Board of India (SEBI) has continued interim restrictions on Rajesh Exports Ltd and its promoter and executive chairman, Rajesh Mehta, through directions issued on October 14, 2026. The order keeps Mehta restrained from buying, selling, or otherwise dealing in the company’s securities, directly or indirectly, until further orders. SEBI also directed Rajesh Exports to continue making “true, fair, accurate and complete” disclosures in its financial statements. The regulator linked the directions to unresolved concerns around financial disclosures and supporting documentation while an investigation and a forensic examination continue. SEBI described the October order as confirmatory, meaning it addresses whether earlier prima facie findings have been rebutted at this stage. SEBI clarified that the confirmatory order is not a final determination of the allegations or a final finding of regulatory violations.

Restriction on Rajesh Mehta has no stated end date

Under the continuing direction, the restraint on Mehta applies to transactions in Rajesh Exports’ securities and does not carry a specified expiry date. The order states that the restriction remains in force “until further orders.” This structure typically indicates that SEBI intends the restraint to remain operative while it completes additional investigative steps. The regulator’s directions focus on securities dealings and disclosure obligations rather than a shutdown of business operations. In comments reported by media, Mehta said the company had not been barred from conducting business and that no penalty had been imposed at this stage. He also indicated he was continuing to cooperate with the regulator.

Link to SEBI’s June 3, 2026 interim ex-parte order

SEBI’s October 14 directions follow an interim ex-parte order issued on June 3, 2026. The June order was based on SEBI’s examination of Rajesh Exports’ financial statements and transactions for the period under scrutiny. After the interim order, SEBI considered the company’s submissions and additional documents furnished. SEBI concluded that Rajesh Exports and Mehta had not satisfactorily rebutted the preliminary findings recorded earlier. As a result, the regulator confirmed and continued the existing directions.

Revenue reporting is the central issue under examination

SEBI’s action stems from findings concerning the company’s reporting of revenue attributable to its subsidiaries. The regulator alleged that a very large portion of consolidated revenue over five financial years was misrepresented. In the October 14 order, SEBI Whole-Time Member Kamlesh C. Varshney recorded that the company failed to rebut prima facie findings, including alleged misrepresentation of 99.80% of consolidated revenue during FY2020-21 to FY2024-25. SEBI’s interim order alleged that approximately ₹15.15385 trillion of consolidated revenue, representing 99.80% of total consolidated revenue during the five-year period, had been misrepresented. SEBI also clarified that this figure relates to revenue reporting under examination. It should not be treated as an established amount of investor losses, a penalty, or a recovery ordered against the company.

Consolidated revenue vs Valcambi SA standalone revenue

A key comparison highlighted in reports around the case is between Rajesh Exports’ reported consolidated revenue and the standalone revenue of its Swiss subsidiary, Valcambi SA. SEBI cited a nearly 99% discrepancy between the consolidated revenue and Valcambi SA’s standalone revenue over five years. Rajesh Exports reported consolidated revenue of about ₹15.34 trillion for FY21 to FY25, while Valcambi SA’s standalone revenue for the corresponding period was about ₹0.0303 trillion. SEBI also referred to issues in consolidated revenue disclosures and gaps in supporting records. The regulator said missing records and documentation remained a concern at this stage.

SEBI’s confirmatory order also references concerns around undisclosed related-party transactions and the routing of company funds through personal accounts. The regulator cited unresolved issues around financial disclosures and related-party disclosures under securities laws. SEBI also said the company and promoter did not adequately rebut preliminary findings despite being given opportunities. The directions include continued cooperation with the investigation and a newly appointed forensic auditor. SEBI also asked that the forensic audit be completed expeditiously and that the investigating authority complete its work without delay.

Why SEBI calls this a confirmatory, not final, order

SEBI explicitly stated that the findings in the October order are confined to whether the prima facie findings in the interim order have been rebutted at this stage. The regulator recorded that nothing in the confirmatory order should be construed as a final determination of allegations or a final finding of violation. SEBI said the final merits, including the applicability of statutory and regulatory provisions, will be considered after completion of the investigation and in appropriate proceedings. This language matters for investors because it indicates that SEBI has not yet concluded the enforcement outcome. It also signals that the current directions are designed to preserve regulatory control while evidence gathering continues.

What the directions mean for investors and the company

The continuing restraint prevents the promoter-chairman from dealing in the company’s securities, but it does not state that Rajesh Exports is barred from operating its business. SEBI’s disclosure directions place emphasis on the integrity of financial reporting and completeness of related-party reporting while the probe remains open. For investors, the immediate implication is heightened regulatory scrutiny of financial statements and disclosures for the period in question. The order also underscores that SEBI expects prompt submission of documents, information, and explanations sought by the investigating authority. Any further regulatory action, SEBI indicated, will depend on the outcome of the continuing investigation, the forensic examination, and subsequent orders.

Key facts at a glance

Item	What the order says	Details in this case
Date of confirmatory order	Interim directions continued	October 14, 2026
Prior SEBI action	Interim ex-parte order	June 3, 2026
Restriction on promoter	No dealing in Rajesh Exports securities	Applies to Rajesh Mehta, direct or indirect, until further orders
Core allegation under scrutiny	Revenue misrepresentation in consolidated reporting	Alleged misrepresentation of 99.80% of consolidated revenue (FY2020-21 to FY2024-25)
Revenue figures referenced by SEBI	Figures are under examination, not losses/penalty	~₹15.15385 trillion alleged misrepresented; consolidated revenue cited ~₹15.34 trillion (FY21-FY25); Valcambi SA standalone revenue cited ~₹0.0303 trillion

What to watch next

SEBI has indicated that the investigation and forensic audit are ongoing and should be completed without delay. The directions require Rajesh Exports and Mehta to continue cooperating and to provide the information sought by the investigating authority within specified timelines. SEBI’s next steps will depend on what the ongoing examination establishes and what further proceedings are initiated under law. Until then, the restrictions on Mehta’s dealing in the company’s securities, and the company’s obligation to maintain accurate and complete financial and related-party disclosures, remain in force.

Frequently Asked Questions

SEBI issued a confirmatory order continuing interim directions, including a restraint on promoter-chairman Rajesh Mehta dealing in the company’s securities and a requirement for accurate financial disclosures.

No. SEBI clarified the order is not a final determination of allegations or a final finding of regulatory violations and is limited to whether interim prima facie findings were rebutted at this stage.

The restraint has no stated end date and remains in force until further orders from SEBI.

SEBI’s interim findings alleged misrepresentation of about ₹15.15385 trillion of consolidated revenue (99.80%) over FY2020-21 to FY2024-25; SEBI also cited consolidated revenue of about ₹15.34 trillion for FY21-FY25 and Valcambi SA standalone revenue of about ₹0.0303 trillion.

No. SEBI clarified the figure relates to revenue reporting under examination and should not be read as investor losses, a penalty amount, or recovery ordered against the company.