DeepState Network Delhi
The Congress party on Thursday raised concerns over LIC's significant investment in Rajesh Exports following SEBI's interim order against the company and its promoter. Congress leader Jairam Ramesh questioned whether the acquisition of such a substantial stake was influenced by the "ruling ecosystem," citing the seriousness of the allegations under investigation.
SEBI's interim findings allege extensive revenue misrepresentation and other financial irregularities at Rajesh Exports, prompting restrictions on promoter Rajesh Mehta and the launch of further forensic examination of company records. The regulator has also directed cooperation with investigators and auditors as the probe continues.
According to recent market data, LIC owns approximately 10.8% of Rajesh Exports, making it one of the company's major institutional investors. The stake has drawn fresh attention as regulatory scrutiny intensified and the company's shares came under pressure in the market.
Rajesh Exports has rejected the allegations, stating that the SEBI order is interim in nature and maintaining that its reported revenues are accurate. The company says it intends to respond through the appropriate legal and regulatory channels.
Market Impact
Investor sentiment weakened following the regulatory action, with Rajesh Exports shares falling sharply. Concerns about the company's governance and financial reporting practices have increased uncertainty among shareholders and market participants.
