LIC Shares Under Pressure As SEBI Order Exposes Alleged Fraud At Rajesh Exports
Shares of Life Insurance Corporation of India (LIC) fell over 1% following a major SEBI interim order against Rajesh Exports. The market regulator flagged massive financial discrepancies at the jewelry maker, putting LIC’s significant institutional equity stake under sudden pressure.
- Republic Business
- 2 min read
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Shares of Life Insurance Corporation of India (LIC) traded lower on Thursday morning as investors reacted to a major regulatory crackdown on gold jewelry manufacturer Rajesh Exports, where the state-run insurer holds a significant legacy stake.
On the NSE, LIC shares opened weak at ₹400.50 apiece, down from the previous close of ₹402.90. Heavy volumes dragged the stock to an intraday low of ₹397.60 during morning trade.
By 11:33 AM IST, the stock was trading at ₹399.40, marking a decline of 0.87%. Rajesh Exports locked into its 5% lower circuit limit with no buyers on the board.
SEBI Crackdown
The selling pressure intensified after the Securities and Exchange Board of India (SEBI) released a 109-page ex-parte interim order on Wednesday evening. Passed by Whole-Time Member Kamlesh Chandra Varshney, the order alleged an "egregious" revenue misstatement of approximately ₹15.15 lakh crore at Rajesh Exports between FY21 and FY25.
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The findings have cast a shadow on institutional backers. Latest exchange shareholding data reveals that LIC holds a substantial 10.80% equity stake in Rajesh Exports, leaving its public equity portfolio exposed to the fallout of the multi-year accounting probe.
Avoid Bottom-Fishing
Prominent domestic brokerages have rushed to caution retail clients. Institutional research desks at Angel One and financial advisory firm Univest issued morning notes advising investors to avoid bottom-fishing or average-buying into Rajesh Exports strictly.
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The research teams noted that while LIC’s core insurance business and independent balance sheet fundamentals remain robust, its equity investment valuations will face short-term headwinds as SEBI expands its forensic audit into the jewelry exporter’s operations.