New Delhi, June 6 -- Rajesh Exports share price is down over 16% this week, with the small-cap stock hitting lower circuits for two consecutive sessions after the Securities and Exchange Board of India (SEBI) levelled serious allegations against the company. The sharp sell-off has drawn comparisons with Gensol Engineering, whose corporate governance crisis wiped out a large portion of shareholder wealth last year.

At the heart of the controversy is SEBI's interim order alleging that Rajesh Exports misrepresented nearly all of its revenue over a five-year period. In its 109-page order, the regulator said its prima facie findings indicate that the company overstated its operational scale and financial performance between FY21 and FY25, wit...