Shares of Rajesh Exports gained 5% on June 15, hitting the upper circuit limit and snapping a seven-day losing streak after a prolonged decline triggered by regulatory concerns. The recovery follows a sharp correction in the stock since June 3, when the Securities and Exchange Board of India (SEBI) issued an interim order alleging significant financial irregularities at the company.

In its interim order, SEBI alleged that Rajesh Exports overstated its consolidated revenue by approximately ₹15.15 lakh crore between FY21 and FY25. According to the regulator, a substantial portion of the reported revenue originated from overseas subsidiaries, particularly Switzerland-based Valcambi SA, and the reported figures could not be reconciled with the subsidiaries' standalone audited financial statements.

The regulator also raised concerns regarding disclosures made by the company and ordered further examination of its financial reporting practices. SEBI's action led to a steep decline in the stock, with shares falling more than 25% in the days following the order as investor sentiment weakened.

Rajesh Exports has denied the allegations and stated that the discrepancies arose from differences in interpretation of financial data relating to its overseas subsidiary. The company has maintained that its reported revenues are accurate and has indicated that it is cooperating with the ongoing regulatory review.

Despite the sharp rebound on June 15, the stock remains under scrutiny as investors await further developments in the SEBI investigation and any findings from the regulatory review process.