25% of Rajesh Exports is owned by LIC, foreign investors
What's the story
The Life Insurance Corporation of India (LIC), the country's largest institutional investor and policyholder trust, owns some 10.8% of Rajesh Exports. The latter has come under scanner due to alleged financial discrepancies exceeding ₹15 lakh crore. LIC's stake has remained unchanged since at least September 2023, according to shareholder data from the March 2026 quarter. This means LIC has neither bought nor sold any shares in the company during this period.
Investor sentiment
FII ownership has decreased over past 3 years
Foreign institutional investors (FIIs) have cut their stake in Rajesh Exports over the past three years. The overall FII ownership has fallen from 17.6% in March 2023 to 14.26% by March 2026. Together, LIC and FIIs own about 25% stake in Rajesh Exports. The current value of LIC's holdings stands at ₹347 crore, down from ₹637 crore at the beginning of 2026 due to stock decline.
Regulatory action
SEBI issued interim ex-parte order against Rajesh Exports
The Securities and Exchange Board of India (SEBI) has issued an interim ex-parte order against Rajesh Exports and its chairman, Rajesh Mehta. The regulator alleged financial misrepresentation, fund-routing irregularities, and non-cooperation in an ongoing investigation. It claimed that the company misrepresented consolidated revenues amounting to some ₹15.15 lakh crore or 99.8% of total consolidated revenue for FY 2020-21 to FY 2024-25.
Revenue concerns
Allegations of misrepresentation and fund-routing irregularities
SEBI noted that nearly 97-99% of Rajesh Exports' consolidated revenue came from foreign subsidiaries, especially Valcambi SA. However, the audited standalone financial statements of Valcambi SA showed only a small portion of the group-level revenues. The regulator alleged that the company may have recognized gross gold transaction values instead of refining or processing income, without adequate supporting records or accounting justification to back it up.
Market impact
Rajesh Exports shares have been under pressure for a while
Rajesh Exports shares have been under pressure for a long time, falling some 40% in the last year. The latest SEBI action has further dented investor sentiment, triggering a lower-circuit opening and wiping out additional market value. The investigation stems from a complaint received by SEBI in March 2024 from a shareholder who alleged potential financial misrepresentation related to large trade receivables that had remained outstanding for more than two years.