Rajesh Exports: ₹15.15 lakh cr Sebi order, MCA probe 2026

What changed for Rajesh Exports this week

Rajesh Exports Ltd came back into focus after its shares briefly rebounded, even as regulatory scrutiny deepened following an interim order by the Securities and Exchange Board of India (Sebi). The stock rose 5% on Monday to hit the upper circuit around Rs 80.23 on the NSE, snapping a steep seven-session decline. That fall had followed Sebi’s interim order dated June 3, which triggered heavy selling and a nearly 30% slide over the losing streak. Despite the single-day bounce, the stock remains far below levels seen before the order, reflecting continued caution among investors.

At the centre of the regulatory action is Sebi’s allegation of significant revenue inflation and other financial reporting irregularities. Separately, reports citing government sources indicate that the Ministry of Corporate Affairs (MCA) is considering further steps, including asking the Registrar of Companies (RoC) to conduct an inspection, and that an SFIO route is among options under discussion. The developments also intersect with another government decision line, with the Ministry of Heavy Industries (MHI) examining whether Rajesh Exports should continue as a beneficiary under the production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage.

Sebi’s interim order and the core allegations

Sebi’s interim ex-parte order, described as a 109-page document in reports, alleges that Rajesh Exports overstated consolidated revenues by approximately ₹1,515,000 crore between FY21 and FY25. Another account describes the period as FY2020-21 to FY2024-25. The regulator said its investigation and forensic review uncovered prima facie evidence suggesting that about 97-99% of the company’s revenue may have been inflated, calling the findings “egregious and unheard of.”

According to reports, Sebi’s findings also pointed to concerns around fund-routing irregularities and disclosures, with a large share of reported consolidated revenue said to have come from overseas subsidiaries. One report specifically mentions Switzerland-based Valcambi SA as a key overseas entity referenced in the interim order. Sebi’s action included restraining promoter Rajesh Mehta from buying, selling, or dealing in securities until further orders, and directing the company to cooperate fully with investigators.

The interim order followed a shareholder complaint received in March 2024, as cited in reports. Sebi’s investigation remains ongoing, and the interim order is subject to final adjudication.

Company’s response and position on the interim findings

Rajesh Exports has denied wrongdoing in multiple responses cited across reports. In an exchange filing, the company clarified that Sebi’s order is interim in nature and that no adverse conclusion has been made yet. It said the revenues declared by the company are correct and that there has been no overstating of earnings.

In another reported development, the company said it would fully cooperate with the fresh forensic audit ordered by Sebi and would not challenge the interim order. Separately, Rajesh Mehta told PTI that the Sebi order was based on a “fundamental accounting error.” Rajesh Exports also told PTI that it had submitted 300-400 GB of documents to Sebi but believed the regulator had been unable to locate the relevant files, adding that it would resubmit documents sought within 15 days.

MCA and SFIO angle: what is being reported

Alongside Sebi’s action, the Ministry of Corporate Affairs is also being linked to potential next steps. Reports citing officials said the MCA is in touch with Sebi over the matter and may ask the relevant RoC to undertake an inspection if required, while Sebi is “currently taking the lead” in the case.

Separate Hindi-language reporting cited sources saying the MCA’s preliminary inquiry found irregularities in the company’s functioning and that an investigation order could be possible, with SFIO among the options. The reporting indicates that the ministry’s preliminary inquiry has yielded evidence that may be examined more formally in an investigation.

Stock move: rebound after a sharp sell-off

Rajesh Exports shares have seen sharp swings since Sebi’s interim order. Reports said the stock crashed nearly 30% over seven consecutive sessions following the order and hit a 52-week low during the sell-off. On June 15, 2026, the stock hit a 5% upper circuit at around Rs 80.90 in one report, while another put the upper circuit price at Rs 80.23.

Other reported price points illustrate the volatility around the order. One report said the shares fell 5% to Rs 98.73 on a Friday, extending a two-day decline to about 10%. Another account of the post-order sell-off noted a day’s low of Rs 104.65 against a prior close of Rs 110.15, with the stock later trading around Rs 103.92.

Even with Monday’s bounce, the longer-term trend remains weak. The stock is down 55% in 2026 so far and 87% over three years, with market capitalisation reported at Rs 2,369 crore.

PLI scheme scrutiny by Ministry of Heavy Industries

The regulatory spotlight has also raised questions over Rajesh Exports’ status under the PLI scheme for ACC battery storage. PTI reported that the MHI would decide “in the coming days” on removing Rajesh Exports from the list of beneficiaries. Economic Times also reported a “strong view” within the ministry that the company should be removed, with a final decision expected after a detailed internal examination.

These reports indicate the ministry is examining Sebi’s interim order as part of its internal process. Rajesh Mehta, as cited, said no official communication had been received yet on the matter.

Key facts at a glance

Timeline of key reported events

Market impact: what investors are reacting to

The immediate market reaction has been driven by uncertainty over the final outcome of Sebi’s investigation and the potential for additional actions by other arms of government. Sebi’s allegation that 97-99% of reported revenue may have been inflated is unusually severe in scale, and that has coincided with sharp price moves, including multiple sessions of lower circuit trading in some reports.

Investors are also factoring in the operational and policy implications flagged by separate reporting, such as potential removal from the battery PLI beneficiary list. At the same time, the company’s public stance has been that the order is interim, based on preliminary observations, and that it is working to provide explanations and supporting documents.

Why this matters: broader governance and disclosure scrutiny

This episode underscores how interim regulatory actions can quickly tighten scrutiny around disclosures, subsidiary reporting, and audit trails, especially when allegations concern consolidated revenue and overseas entities. It also shows how parallel government processes can be triggered when a listed company comes under intense market-regulator review, including possible RoC inspections and discussions around deeper probes.

Sebi’s interim order, the company’s document-submission claims, and the possibility of an MCA-led inspection create multiple moving parts that can influence investor perception even before any final adjudication. For now, what is confirmed in the public domain is limited to Sebi’s interim findings, the restrictions imposed, and the company’s denials and statements of cooperation.

Conclusion

Rajesh Exports’ share price rebound on June 15 offered a short pause after a steep post-order fall, but the larger story remains the regulatory overhang from Sebi’s interim order alleging ₹1,515,000 crore of revenue inflation. Separately, reports say the MCA is in touch with Sebi and may consider RoC inspection steps, while the MHI is examining whether the company should remain a PLI beneficiary. The next market cues are likely to come from further regulatory updates, progress in the forensic audit, and any formal communication on the PLI decision timeline.