Shares of extended losses for the second straight trading session on Friday, falling 5 per cent to hit a fresh lower circuit of ₹98.73 on the amid mounting concerns over alleged financial misrepresentation flagged by .
The stock has declined 10 per cent over the last two trading sessions after the market regulator barred promoter and Executive Chairman Rajesh Mehta from dealing in the company’s securities through an interim order over alleged large-scale financial misrepresentation and diversion of funds.
The stock had hit a lower circuit of ₹103.92
SEBI, in its interim order dated June 3, 2026, alleged that Rajesh Exports had prima facie misrepresented nearly ₹15.15 lakh crore in revenues linked to its subsidiaries and step-down subsidiaries between FY21 and FY25. According to the regulator, the alleged misstatement accounted for around 99.8 per cent of the revenues attributed to the company’s overseas subsidiaries and step-down subsidiaries, creating what it termed an “inflated and misleading picture” of operations.
In response, Rajesh Exports said the interim order does not contain any conclusive adverse findings against the company. In a clarification to stock exchanges, the company said there appeared to be a “communication gap and confusion” between SEBI and the company.
“The order is interim and there has been no any adverse conclusion on any aspect arrived by SEBI,” the company said, adding that it is in the process of submitting all required documents to the regulator. Rajesh Exports also maintained that the revenues reported in its financial statements are correct.
Chairman Rajesh Mehta denied allegations of fund diversion. “Not a single rupee of the funds of the company, neither shareholder funds nor company funds, has been diverted for any promoter’s sake,”
The company further said no fine, penalty or coercive action had been imposed by SEBI against Rajesh Exports under the interim order.