BSE seeks clarification from Rajesh Exports over ED searches

Mumbai, June 24 (IANS) The Bombay Stock Exchange (BSE) on Wednesday sought clarification from gold jewellery manufacturer Rajesh Exports Ltd regarding reports of searches conducted by the Enforcement Directorate (ED) at multiple locations linked to the Bengaluru-based company.

The stock exchange’s query came a day after the central agency carried out searches at nine premises associated with the company under the provisions of the Foreign Exchange Management Act (FEMA).

In a regulatory filing, Rajesh Exports informed the exchange that its response to the clarification sought was still awaited.

“The Exchange has sought clarification from Rajesh Exports Limited with respect to recent news item captioned ED searches Rajesh Exports in Bengaluru after SEBI order flags alleged financial misstatements: Sources. The response from the Company is awaited,” it said in its filing.

The latest development adds to the mounting legal and regulatory challenges faced by the company. Rajesh Exports is already under scrutiny following allegations of a major financial fraud raised by the Securities and Exchange Board of India (SEBI).

The market regulator has ordered a fresh forensic audit into the affairs of the company as part of its ongoing investigation. The allegations have intensified concerns among investors and market participants regarding the company’s financial practices and governance standards.

Rajesh Exports Founder and Chairman Rajesh Mehta recently denied allegations of fund diversion or any wrongdoing. He said the company would fully cooperate with the forensic audit ordered by the SEBI and would not challenge the interim order issued by the market regulator.

The ED searches under FEMA and the continuing SEBI investigation have placed Rajesh Exports under heightened regulatory scrutiny, with investors closely monitoring further developments in the case.

–IANS

pk/vd