Overview
- SEBI issued an interim order on June 4 alleging large-scale misrepresentation of Rajesh Exports’ financials, ordered a forensic review, and barred chairman Rajesh Mehta from dealing in the company’s securities.
- The company’s shares have plunged since early June and hit lower-circuit limits, deepening losses for retail holders and straining market liquidity.
- Rajesh Mehta told reporters on Monday that neither the company nor promoters sold shares to LIC and that the insurer accumulated its reported 10.80% stake through open-market purchases over about 20 years.
- LIC has not publicly responded to questions about its stake and the matter has drawn political scrutiny from opposition parties over institutional due diligence.
- The SEBI order is interim and not a final finding so the forensic review and regulator hearings will determine next steps for enforcement, disclosure and the risks facing small investors.