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From News Desk

SEBI has passed an order against Rajesh Exports, a gold and silver bullion company.

The case started with a shareholder complaint about large trade amounts owed by the shareholder that were outstanding for more than two years. If these amounts stay unpaid for a long time, investors have a right to inquire about it.

According to SEBI, the company allegedly misrepresented its financials, failed to disclose key subsidiary details, recorded questionable transactions, adjusted receivables in an unclear way and routed funds through promoter-linked accounts and entities.

The order is still interim in nature. These are prima facie findings, not final conclusions.

The regulator alleged that Rajesh Exports did not properly place the financial statements of its subsidiaries and step-down subsidiaries in the public domain. SEBI sad that several transactions were not properly disclosed as related party transactions and were not placed before the board or audit committee for approval.

According to SEBI, If most of the revenue comes from subsidiaries, especially located overseas, investors need to check whether those subsidiary accounts are available and whether the numbers can be independently verified.