The interim order stems from an investigation initiated following a shareholder complaint concerning the company’s financial reporting practices. SEBI appointed an investigating authority in October 2024 and subsequently engaged forensic auditor BDO to conduct an independent review of the company’s books and records.

According to SEBI’s preliminary observations, overseas subsidiaries, particularly the company’s Swiss refining subsidiary Valcambi, accounted for approximately 97–99% of consolidated revenue during the review period.

However, the regulator noted a significant divergence between revenues reported by Valcambi and the sales figures disclosed in the group’s consolidated financial statements. SEBI estimates the aggregate discrepancy at around Rs 15.15 lakh crore across FY21–FY25.

The regulator further stated that it was unable to independently verify the company’s reported investment of Rs 1,035 crore in African gold-mining assets.

SEBI’s order also cites several challenges encountered during the forensic review, including the alleged non-submission of key customer and vendor records, as well as the absence of financial statements for certain subsidiaries.

The regulator noted that the audit process was further complicated by incomplete documentation, inconsistencies in information provided, and limited cooperation during certain stages of the investigation.

The proceedings remain ongoing, and Rajesh Exports will have an opportunity to present its response before SEBI reaches a final conclusion.

Any final order may result in monetary penalties, disgorgement directives, or restrictions on access to the securities market.

Rajesh Exports is one of the largest manufacturers of gold products in the world. The company exports its products to various countries around the world and also supplies its products in wholesale markets and jewellery showrooms across India.