Rajesh Exports shares: SEBI upholds curbs on promoter over alleged fund routing

Shares of Rajesh Exports Ltd are in focus on Thursday after markets regulator SEBI issued a final order in a case involving the company, following interim directions in June.

Under the order, Rajesh Mehta, founder and chairman of Rajesh Exports, will continue to be restrained from buying, selling or otherwise dealing, directly or indirectly, in the company’s securities until further orders.

SEBI also directed Rajesh Exports to continue making “true, fair, accurate and complete disclosures” in its financial statements, related-party transactions and other material disclosures, in accordance with applicable provisions of the SEBI Act, 1992, and regulations framed under it, including the LODR Regulations.

“The noticees shall continue to cooperate with the investigating authority and shall provide such documents, information and explanations as may be sought by the investigating authority in connection with the investigation,” SEBI said, adding that the information must be provided within the time specified by the investigating authority.

In June, SEBI had alleged that Rajesh Exports misrepresented about Rs 15.15 lakh crore, equivalent to 99.80 per cent of its revenue from subsidiaries, over FY21-FY25.

The regulator has now asked the investigating agencies and the forensic auditor appointed after the interim order to complete their work expeditiously.