UPSC Prelims Practice Questions — Rajesh Exports shares hit 5% lower circuit post SEBI order

Q1. With reference to the Securities and Exchange Board of India's (SEBI) interim order in the matter of Rajesh Exports Ltd. (June 2026), consider the following statements: 1. The order was passed by a Whole Time Member of SEBI invoking directional powers under Section 11B of the SEBI Act, 1992. 2. The alleged revenue misrepresentation was attributed primarily to consolidation of figures of the company's overseas subsidiaries. 3. SEBI directed Rajesh Exports Ltd. to make true and fair disclosures under the SEBI (LODR) Regulations, 2015. 4. The order was passed by the Securities Appellate Tribunal (SAT) in appeal against an earlier adjudication order. Which of the statements given above is/are NOT correct?

  1. The order was passed by a Whole Time Member of SEBI invoking directional powers under Section 11B of the SEBI Act, 1992.
  2. The alleged revenue misrepresentation was attributed primarily to consolidation of figures of the company's overseas subsidiaries.
  3. SEBI directed Rajesh Exports Ltd. to make true and fair disclosures under the SEBI (LODR) Regulations, 2015.
  4. The order was passed by the Securities Appellate Tribunal (SAT) in appeal against an earlier adjudication order.
  • A. 1 only
  • B. 2 and 3
  • C. 4 only
  • D. 1, 2 and 4

Q2. In the context of the SEBI interim order against Rajesh Exports Ltd. (2026), consider the following obligations/disclosures alleged to have been violated: 1. Disclosure of related-party transactions to stock exchanges. 2. Furnishing of true and fair financial results approved by the Board. 3. Disclosure of material events/information having a bearing on the performance of the listed entity. 4. Filing of country-by-country (CbC) transfer pricing reports with stock exchanges. Which of the above are obligations correctly identified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015?

  1. Disclosure of related-party transactions to stock exchanges.
  2. Furnishing of true and fair financial results approved by the Board.
  3. Disclosure of material events/information having a bearing on the performance of the listed entity.
  4. Filing of country-by-country (CbC) transfer pricing reports with stock exchanges.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q3. Which one of the following overseas subsidiaries of Rajesh Exports Ltd. was specifically identified by SEBI in its June 2026 interim order as the principal entity to which the company allegedly attributed the bulk of its inflated consolidated revenues?

  • A. Valcambi SA, Switzerland
  • B. PAMP SA, Switzerland
  • C. Argor-Heraeus SA, Switzerland
  • D. Metalor Technologies SA, Switzerland

Q4. The interim order of June 2026 barring the promoter of Rajesh Exports Ltd. from dealing in the securities of the company was passed by SEBI primarily by invoking powers under which one of the following provisions?

  • A. Sections 11(1), 11(4) and 11B of the SEBI Act, 1992
  • B. Section 15HA of the SEBI Act, 1992
  • C. Section 24 of the SEBI Act, 1992
  • D. Section 12A of the Securities Contracts (Regulation) Act, 1956

Q5. The forensic audit of the financial statements of Rajesh Exports Ltd. ordered by SEBI in connection with its 2026 interim order is being conducted by which one of the following agencies?

  • A. BDO India Services
  • B. Serious Fraud Investigation Office (SFIO)
  • C. National Financial Reporting Authority (NFRA)
  • D. Office of the Comptroller and Auditor General of India