Shares of Life Insurance Corporation of India (LIC) declined by over 1% after Rajesh Exports, in which it holds a 10.80% stake, saw a significant 5% drop. This decline follows an interim order from the Securities and Exchange Board of India (Sebi), which alleged serious financial irregularities, including inflated revenue claims. The order, issued on June 3, indicated that nearly 97-99% of the company's reported revenue might be overstated. The investigation was prompted by a shareholder complaint received in March 2024 regarding substantial trade receivables. Sebi's findings highlighted the company's lack of cooperation during the investigation, which included withholding access to essential accounting systems and financial records. As a result, Sebi has restricted Rajesh Mehta, the promoter, from trading in the company's securities and ordered Rajesh Exports to provide all outstanding information within 30 days. A new forensic auditor will also be appointed to ensure a comprehensive review of the company's financial transactions.