Rajesh Exports hits 5% lower circuit as ED alleges FEMA breaches, gold stock mismatch
Bengaluru jeweller's stock fell to ₹97.02 after ED searches across 9 locations flagged a 40% gold stock mismatch and missing trade records for FY21-FY25, compounding SEBI's claim of ₹15.15 lakh crore inflated revenue via Swiss unit Valcambi.
What happened
Rajesh Exports stock hit a 5% lower circuit at ₹97.02 after ED searches alleged FEMA violations, missing trade records, and a 40% gold stock mismatch, following
Key facts
- ₹97.02
- 5%
- ₹15.15 lakh crore
- 40%
- 9 locations
- FY21-FY25
Why this matters
Any M&A, financing, or partnership exposure involving Rajesh Exports or its Swiss Valcambi unit should be paused pending clarity on FEMA, inventory, and revenue restatement risks that could materially reshape valuation and deal structure.
What to watch
- ED prosecution complaint filing or PMLA attachment order
- SEBI interim order on inflated revenue allegation
- Credit rating action from CRISIL/ICRA/CARE
- Q3FY25 results delay or qualified audit opinion
- Promoter share pledge ratio crossing 50%
- Exchange surveillance measure escalation (ASM Stage 2+)
- Any RBI advisory on gold loan exposures to the group
- Track promoter pledge disclosures and any margin-call driven sales in next 5 sessions
- Monitor mutual fund and FII shareholding changes in Q3 filings for institutional exit signals
- Watch for auditor (Deloitte/peer) commentary or resignation in upcoming results
- Scan Swiss FINMA and customs data for Valcambi-linked trade reconciliation
- Check lender exposure - SBI, HDFC, Axis - for any provisioning hints in Q3 con-calls