Rajesh Exports' House of Cards?

In today’s Finshots, we break down what SEBI believes may have gone wrong at Rajesh Exports.The StoryIf you’ve ever looked at Rajesh Exports’ stock chart, there’s a good chance you would have walked away confused.

Especially if you didn’t know much about the company.Because despite going public way back in 1995, the stock only seems to have started attracting serious investor attention over the last decade or so. And in that time, the company has seen some dizzying highs and brutal lows.Just to give you some context, in 2022, Rajesh Exports comfortably sat in the large-cap bucket, with a market cap of over ₹20,000 crore. Then for the next three years, until 2025, it slipped into mid-cap territory (valued between ₹5,000 crore and ₹20,000 crore) Since January this year, however, it has entered the small-cap zone, with a market cap below ₹5,000 crore.And as it turns out, this dramatic fall wasn’t random. It forms the backdrop to what could become one of the biggest accounting fraud investigations in Indian corporate history.For the uninitiated, Rajesh Exports Limited (REL) is a company that describes itself as a gold refiner and jewellery manufacturer.

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Recently, market regulator SEBI issued a sweeping interim order against the company in a case involving what appears to be massive financial misrepresentation.And we’re not talking about small numbers here. . Unsurprisingly, the market didn’t take kindly to the allegations and the stock tanked.But here’s the interesting bit.