The ongoing regulatory action against Rajesh Exports has brought fresh attention to the company’s shareholder base, particularly the presence of large institutional investors.
Shareholding data for the March 2026 quarter shows that Life Insurance Corporation of India (LIC), the country’s largest insurer and institutional investor, holds a 10.80% stake in Rajesh Exports. The holding has remained unchanged since at least September 2023, with no reported buying or selling during this period.
The development comes after the Securities and Exchange Board of India (Sebi) issued an interim ex-parte order against Rajesh Exports Ltd and its Chairman and Managing Director, Rajesh Mehta.
In its interim order, Sebi cited prima facie findings of financial misrepresentation, fund-routing irregularities and non-cooperation during an ongoing investigation.
According to the regulator, Rajesh Exports may have of around Rs 15.15 lakh crore between FY21 and FY25. Sebi said this amount represented nearly 99.8% of the company’s total consolidated revenue during the period under review.
The regulator has questioned whether the reported revenues were supported by adequate records and documentation.
Sebi noted that nearly 97% to 99% of the company’s consolidated revenue came from foreign subsidiaries, particularly Valcambi SA.
However, according to the regulator, Valcambi’s audited standalone financial statements reflected only a small portion of the revenues reported at the consolidated group level.
Sebi alleged that the company may have recognised the gross value of gold transactions rather than only refining or processing income. The regulator also said it did not receive sufficient supporting records, customer details, invoices or accounting explanations to justify the reported figures.
As part of its action, Sebi has referred the matter to the National Financial Reporting Authority (NFRA) for examination of the conduct of the company’s statutory auditors.
While LIC has maintained its position, foreign institutional investors (FIIs) have gradually reduced their exposure to Rajesh Exports over the past three years.
Total FII ownership in the company declined from 17.60% in March 2023 to 14.26% in March 2026.
Among the major foreign investors, Bridge India Fund currently holds 8.46%, while Schwab Fundamental Emerging Markets Equity ETF owns 2.70%.
The recent decline in the company’s share price has reduced the value of institutional holdings.
LIC’s stake, which was valued at around Rs 637 crore at the beginning of 2026, is currently worth about Rs 347 crore.
Similarly, the value of FII holdings has fallen from approximately Rs 838 crore to Rs 456 crore during the same period.
Meanwhile, shares of LIC also came under slight pressure during Thursday’s trading session as LIC shares closed around 1% lower by the end of the day.