Life Insurance Corporation of India shares declined about 1% following SEBI's interim order barring Rajesh Exports and promoter Rajesh Mehta from the securities market. According to reports from NDTV Profit, the regulatory action stems from allegations of revenue discrepancies worth ₹15.15 lakh crore between FY21 and FY25. SEBI's investigation, triggered by a shareholder complaint and supported by a forensic audit, questioned revenues underpinning almost the entirety of Rajesh Exports' consolidated sales during this period.
The regulatory action has drawn attention to LIC's 10.8% stake in Rajesh Exports. As reported by NDTV Profit, SEBI's investigation revealed a revenue mismatch of ₹15.15 lakh crore and cited missing records, undisclosed subsidiary financial statements, and lack of cooperation during the probe. The regulator highlighted that Rajesh Exports failed to provide critical customer and vendor records, while financial statements of key subsidiaries were allegedly not disclosed. The investigation remains ongoing, with Rajesh Exports having an opportunity to respond before any final determination.
The regulatory action also involves Canara Bank's exposure to Rajesh Exports, where the bank classified its exposure as a stressed asset after repayment defaults with total dues standing at about ₹509 crore. According to NDTV Profit, LIC owns a 5.85% stake in Canara Bank. Earlier this year, Canara Bank initiated a process to sell the stressed loan through an auction route, with a public notice issued on May 4, bids invited until May 22, and an anchor bidder expected by May 27. However, the bank abruptly cancelled the sale process on May 7 without disclosing reasons.
The LIC share decline occurred amid broader market weakness, with Sensex falling over 300 points and Nifty dropping below 23,350 due to persistent foreign institutional investor selling and global headwinds. As reported by Geojit Investments, geopolitical uncertainties in West Asia and FPI outflows are weighing on the market. The India VIX jumped 6% to 16.28, indicating increased market volatility. Top losers on Sensex included Infosys, Eternal, ICICI Bank, Bharti Airtel, Kotak Mahindra Bank, and Reliance Industries, all falling up to 1%.
