Key facts
- Sebi barred Rajesh Mehta, chairman of Rajesh Exports, from trading company shares.
- A forensic probe uncovered alleged revenue inflation and fund diversion over four years.
- Sebi found Rajesh Exports presented a misleading financial picture.
- Sebi ordered a fresh audit of Rajesh Exports.
- Sebi referred the auditors' conduct for action.
The Securities and Exchange Board of India (Sebi) has barred Rajesh Mehta, the chairman of Rajesh Exports, from trading the company's shares. This action follows a forensic investigation that uncovered alleged revenue inflation and fund diversion spanning a four-year period. Sebi determined that Rajesh Exports presented a misleading financial picture. Consequently, the regulator has mandated a fresh audit for the company and initiated a review of the auditors' conduct, referring their actions for further disciplinary measures.