Rajesh Exports, the Bengaluru-based jewellery maker, is under SEBI’s scanner after the regulator flagged serious financial irregularities worth ₹15.15 lakh crore across five fiscal years. SEBI’s 109-page order accused the company of inflating revenues through overseas subsidiaries, especially Switzerland-based Valcambi SA, while failing to disclose proper financials. The watchdog also alleged diversion of ₹339 crore into promoter Rajesh Mehta’s personal accounts without approvals.
Following the order, Rajesh Exports’ shares hit the lower circuit at ₹104.65, triggering panic selling. The small-cap stock has been a wealth destroyer, plunging 42% in 2026, 49% in one year, and over 80% in five years. Since its peak of ₹1,028 in February 2023, market capitalisation has eroded by nearly ₹28,000 crore, wiping out ₹12,725 crore of public wealth.
The risk is particularly high for LIC, which holds 10.8% stake worth ₹334 crore, and 194,000 retail investors, whose combined holdings are valued at ₹437 crore. Together, they face potential losses of ₹770 crore. Experts warn that losses of ₹770 crore. Experts warn that weak cash flows despite strong reported earnings are red flags, and governance lapses make exits harder as liquidity dries up.
Analysts advise caution, stressing the importance of strong corporate governance and transparent disclosures. For trapped investors, opportunities to exit should be evaluated carefully, as uncertainty around Rajesh Exports is likely to persist until SEBI’s probe concludes.