LIC Maintains Significant Stake in Rajesh Exports, Foreign Institutional Investors Hold Nearly 14%

Life Insurance Corporation of India Maintains Holdings in Rajesh Exports Amid Regulatory Scrutiny

The Life Insurance Corporation of India (LIC), the country's largest institutional investor and policyholder trust, has maintained its stake in Rajesh Exports, a position it has held without buying or selling a single share since at least September 2023. According to shareholder data from the March 2026 quarter, LIC holds around 10.80% of Rajesh Exports.

The Securities and Exchange Board of India (SEBI) has passed an interim ex-parte order against Rajesh Exports Ltd. (REL) and its Chairman and Managing Director, Rajesh Mehta, citing prima facie findings of financial misrepresentation, fund-routing irregularities, and non-cooperation during an ongoing investigation. SEBI alleged that REL misrepresented consolidated revenues aggregating to approximately Rs 15.15 lakh crore, representing 99.80 percent of the total consolidated revenue for the period FY 2020-21 to FY 2024-25.

According to SEBI, nearly 97-99 percent of the company's consolidated revenue originated from foreign subsidiaries, particularly Valcambi SA. However, Valcambi's audited standalone financial statements showed only a small fraction of the revenues reported at the group level. SEBI contends that the company recognized gross gold transaction values rather than only refining or processing income, without providing adequate supporting records, customer details, invoices, or accounting justification, thereby potentially inflating revenues and misleading investors. The regulator has also referred the matter to the National Financial Reporting Authority (NFRA) for examination of the conduct of the company's statutory auditors.

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Foreign institutional investors have reduced their holdings in Rajesh Exports over the past three years, with overall FII ownership falling from 17.60% in March 2023 to 14.26% by March 2026. The current top FII holders in the company are:

The current value of LIC holdings stood at Rs 347 crore, compared to Rs 637 crore at the start of 2026. The current value of FII holdings stood at Rs 456 crore, compared to Rs 838 crore.

Rajesh Exports' stock has fallen around 40 percent over the last year. The stock opened around 5 percent lower at Rs 103 on June 5. Moneycontrol had previously flagged that LIC had continued to maintain its nearly 10 percent holding despite the fall in stock price.

Read also: Rajesh Exports Plummets to Lower Circuit as SEBI Discovers ₹15.15 Lakh Crore in Misrepresented Financial Figures

The stock has previously been under regulatory scanner. In 2023, the National Stock Exchange (NSE) sought clarification from Rajesh Exports for its failure to disclose its cash-flow statement for FY23. Media reports indicated that the company had neglected to disclose half-year cash-flow statements and proper audit reports alongside quarterly results for the period ending September 2023.

Moneycontrol has reached out to LIC for their comments.