{
  "id": 14476320,
  "title": "SEBI continues curbs on Rajesh Exports, flags gaps in financial disclosures",
  "url": "https://urgent.news/2026/10/14/sebi-continues-curbs-on-rajesh-exports-flags-gaps-in-financial",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T15:03:13.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sebi-continues-curbs-on-rajesh-exports-flags-gaps-in-financial-disclosures/article71584178.ece"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Board of India (SEBI) has reinforced its restrictions on Rajesh Exports (REL) and its owner, Rajesh Mehta, citing ongoing issues with financial disclosures. The regulator has barred Mehta from engaging in any dealings with the company's securities until further notice. Additionally, REL has been ordered to provide the information requested by the investigators and maintain accurate and complete disclosures of its financial statements and related-party transactions. A newly appointed forensic auditor has been instructed to expedite its work and the investigating authority is urged to finalize its investigation promptly. These directions follow an interim order issued on June 3, after an investigation into REL's financial statements between April 2020 and March 2024, sparked by complaints about large trade receivables exceeding two years. One of the primary concerns revolves around the substantial discrepancy between REL's reported consolidated revenue and the standalone revenue of its Swiss subsidiary, Valcambi SA. While REL disclosed ₹15.45 lakh crore in consolidated revenue from 2021 to 2025, Valcambi's standalone revenue for the same period was ₹3,027.38 crore, a difference SEBI could not easily explain due to variations in reporting periods. REL defended its revenue figures by asserting that Valcambi recognized the value addition from gold refining and processing as revenue, whereas its holding company, Global Gold Refineries AG, reported the gross value of gold transactions along with processing charges. However, SEBI pointed out that REL failed to submit audited accounts indicating Valcambi's revenue based on gross-value or sufficient transaction-level documents to reconcile the figures. The regulator also highlighted that REL's consolidated financial statements, prepared voluntarily, lacked a statutory audit opinion in line with Swiss law. Moreover, SEBI accused the company of not submitting several records requested during the investigation, including journal-entry data, details of customers and suppliers, and supporting documentation for transactions conducted through its foreign subsidiaries. In the order, REL stated that digitizing hundreds of voucher books containing daily journal entries would be impractical. The company argued that it had cooperated with the investigation, but SEBI rejected this claim, asserting that some information could not be divulged due to confidentiality obligations and Swiss data-protection laws. The investigation encompasses transactions funneled through Mehta's personal bank accounts, fund transfers involving Elest Pvt Ltd, and dealings with REL's subsidiary, ACC Energy Storage Pvt Ltd. The regulator has expressed concerns regarding the disclosure and approval of these transactions, as well as the company's explanation for the transactions. Despite this, SEBI maintained that the explanations provided thus far have not sufficiently addressed the concerns. It clarified, however, that the findings in the confirmatory order do not constitute a final determination of the allegations. The investigation and any subsequent proceedings will proceed in accordance with the law.",
  "summary": "Regulator says revenue disparity between parent and overseas subsidiary remains unexplained; forensic audit and investigation to be completed expeditiously",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}