Shares of Rajesh Exports plunged another 5% to hit the lower circuit for a second straight session on Friday after market regulator Sebi issued an interim order against the precious metals exporter and its promoter over alleged large-scale financial irregularities. The company, however, denied the allegations and maintained that it had committed no wrongdoing.Shares of the company dropped 5% to hit the lower circuit at Rs 98.73 apiece on NSE today. The stock has now fallen around 10% in just two sessions after SEBI in its interim order claimed that its investigation and forensic review had uncovered prima facie evidence suggesting that about 97-99% of the company's revenue may have been inflated, describing the findings as "egregious and unheard of."The market regulator restrained promoter Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders, and also directed the company to cooperate fully with investigators. This came after a shareholder complaint received in March 2024Rajesh Exports blames ‘communication gap and confusion’Rajesh Exports, in an exchange filing released on Thursday, clarified that the order is interim and no adverse conclusion has been made by SEBI yet. It said that the revenues declared by the company are correct, and no overstating of earnings has been done. “There seems to be some type of communication gap and confusion between SEBI and the company,” Rajesh Exports said.Also read: Rajesh Exports likely to lose PLI beneficiary status, face MCA probeThe company further said that it is confident that SEBI, in its wisdom, will clarify the situation and arrive at the correct conclusion, based on the authenticated documents which are in the process of submission by the company.“The core observation in the order is concerning the misreporting of the revenues. This has emerged primarily due to confusion because SEBI has considered the EBIDTA of Valcambi instead of Revenue hence it has stated that there is a difference of about 97% in the revenue. The consolidated Revenue as stated by the Company is correct,” Rajesh Exports said in another exchange filing.Also read: Who is Rajesh Mehta, man behind Rajesh Exports, facing SEBI ban over alleged Rs 15.15 lakh crore 'fraud' impacting LIC, others?Rajesh Exports share priceRajesh Exports shares had hit the 5% lower circuit yesterday after SEBI’s interim order spooked investors. The stock has fallen more than 12% in one week and 13% in one month. The stock is down 42% in 2026 so far.Also read: The curious case of Rajesh Exports(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)