Rajesh Exports shares slip as NFRA begins probe; stock down 47% YTD
Speaking on the sidelines of a FICCI conference on governance, NFRA Chairman Nitin Gupta confirmed that the regulator has started its review of the matter.
- Jul 8, 2026,
- Updated Jul 8, 2026 10:36 AM IST
Shares of Rajesh Exports Ltd declined in Wednesday's trade after National Financial Reporting Authority (NFRA) said the audit regulatory body has initiated its investigation into the company, nearly a month after the Securities and Exchange Board of India (Sebi) passed an interim order alleging large-scale revenue misrepresentation.
The stock was last seen trading 3.32 per cent lower for the day. At this level, Rajesh Exports shares have plunged 47.25 per cent on a year-to-date (YTD) basis.
Speaking on the sidelines of a FICCI conference on governance, NFRA Chairman Nitin Gupta confirmed that the regulator has started its review of the matter.
"We have started our process," Gupta said. He, however, declined to provide any timeline for the probe and did not share any preliminary observations.
The development follows Sebi's interim order against the jewellery exporter, in which the regulator alleged misreporting of approximately Rs 15.15 lakh crore in revenue over a five-year period, an amount that it said covered nearly the company's entire reported revenue during that timeframe.
The market regulator also alleged that Rajesh Exports diverted company funds without obtaining the necessary approvals or making the required disclosures.
Responding to Sebi's findings, Rajesh Exports had said the matter arose due to a "confusion and communication gap" and added that it is in the process of addressing the issues highlighted by the regulator.
As part of its order, Sebi barred Rajesh Exports and its promoter, Rajesh Mehta, from accessing the securities market until the completion of its investigation.
According to Sebi, around 97-99 per cent of the company's consolidated revenue was generated by its overseas subsidiaries, particularly Switzerland-based Valcambi SA. The regulator further alleged that Rajesh Exports failed to consistently disclose the financial statements of its subsidiaries in the public domain.
Shares of Rajesh Exports Ltd declined in Wednesday's trade after National Financial Reporting Authority (NFRA) said the audit regulatory body has initiated its investigation into the company, nearly a month after the Securities and Exchange Board of India (Sebi) passed an interim order alleging large-scale revenue misrepresentation.
The stock was last seen trading 3.32 per cent lower for the day. At this level, Rajesh Exports shares have plunged 47.25 per cent on a year-to-date (YTD) basis.
Speaking on the sidelines of a FICCI conference on governance, NFRA Chairman Nitin Gupta confirmed that the regulator has started its review of the matter.
"We have started our process," Gupta said. He, however, declined to provide any timeline for the probe and did not share any preliminary observations.
The development follows Sebi's interim order against the jewellery exporter, in which the regulator alleged misreporting of approximately Rs 15.15 lakh crore in revenue over a five-year period, an amount that it said covered nearly the company's entire reported revenue during that timeframe.
The market regulator also alleged that Rajesh Exports diverted company funds without obtaining the necessary approvals or making the required disclosures.
Responding to Sebi's findings, Rajesh Exports had said the matter arose due to a "confusion and communication gap" and added that it is in the process of addressing the issues highlighted by the regulator.
As part of its order, Sebi barred Rajesh Exports and its promoter, Rajesh Mehta, from accessing the securities market until the completion of its investigation.
According to Sebi, around 97-99 per cent of the company's consolidated revenue was generated by its overseas subsidiaries, particularly Switzerland-based Valcambi SA. The regulator further alleged that Rajesh Exports failed to consistently disclose the financial statements of its subsidiaries in the public domain.