Rajesh Exports crashes 5%! ED probe triggers fresh investor panic
Mumbai/IBNS: Shares of Rajesh Exports Ltd. extended their losses on Thursday, falling 5 percent and hitting the lower circuit after the Enforcement Directorate (ED) alleged irregularities in the company's foreign exchange transactions under the Foreign Exchange Management Act (FEMA), media reports said.
The stock touched its lower circuit limit of Rs 97.02 on the National Stock Exchange (NSE) as investor sentiment remained weak amid the ongoing probe.
ED alleges irregularities in foreign exchange transactions
According to reports, the ED has alleged that the gold refiner and jewellery exporter deviated from standard commercial practices in its foreign exchange dealings.
The agency is investigating the company's transactions under FEMA and examining whether regulatory norms were violated.
Documents related to overseas transactions under scanner
Probe agencies have reportedly claimed that the company was unable to furnish necessary documents related to imports, exports, overseas investments and foreign trade settlements.
The alleged lack of supporting documentation has become a key focus of the investigation.
Searches conducted in Bengaluru and Mumbai
As part of the probe, the Enforcement Directorate carried out searches at multiple locations in Bengaluru and Mumbai.
The investigation is continuing, with authorities scrutinising financial records and overseas transaction details linked to the company.
Investor confidence takes a hit
The latest developments have weighed heavily on investor sentiment, triggering fresh selling pressure in the stock.
Market participants will closely watch further disclosures from the company and any updates from the Enforcement Directorate regarding the ongoing FEMA investigation.
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