Shares of Rajesh Exports Ltd will be in focus on Wednesday after the Enforcement Directorate (ED) reportedly conducted searches at the company, which is also facing scrutiny from market regulator Sebi over alleged financial irregularities, official sources told PTI.

The searches were understood to have been carried out under the Foreign Exchange Management Act (FEMA) at the Bengaluru-headquartered company. Premises linked to the company in Bengaluru and Mumbai were covered as part of the action, PTI reported.

A Mint report suggested that investigators were examining transactions involving nearly Rs 3,000 crore of trade receivables that were allegedly adjusted against gold imports, the delivery of which is under scrutiny.

"Investigation conducted so far has revealed multiple transactions in the scrip of Rajesh Exports through benamidars. Preliminary findings indicate that over $20 million may have been siphoned out of the country through such transactions," an ED official told Mint. Business Today could not independently verify the report.

The stock as in news earlier this month following a SEBI order after the markets regulator suspected mis-reporting of  Rs 15.15 lakh crore revenue, nearly entire revenue over a five-year period. As per SEBI, Rajesh Exports diverted company funds without the required approvals and disclosures. Rajesh Exports shares have lost 52 per cent of their market value in the past six months.

Rajesh Exports suggested that the entire matter was a result of confusion and communication gap, which the company is in the process of addressing with SEBI. 

SEBI has barred Rajesh Exports and its promoter Rajesh Mehta from accessing the securities market until the completion of its investigation. According to Sebi, around 97–99 per cent of Rajesh Exports' consolidated revenue originated from its overseas subsidiaries, particularly Switzerland-based Valcambi SA. However, the company allegedly failed to disclose the financial statements of its subsidiaries in the public domain on a consistent basis, SEBI said.