Major Financial Showdown: SEBI Issues Notice of Demand to Trader over DU Digital Technologies Stock Trading Activities
The Securities and Exchange Board of India (SEBI) has issued a stern Notice of Demand regarding the trading activities of Jigneshkumar Purshottamdas Patel concerning the scrip of DU Digital Technologies Limited, now DU Digital Global Limited. This action comes as part of SEBI’s ongoing enforcement proceedings against entities involved in suspicious market activity related to the company’s stock.The notice specifies a total outstanding liability amount demanded from Mr. Patel. The demand is issued under Rule 2 of the Second Schedule to the Income-Tax Act, 1961, read with Section 28A of the SEBI Act, 1992.
Breakdown of Financial Dues Imposed by SEBI
SEBI has certified that a sum totaling ₹8,49,000/- is due to the Board from Mr. Patel. This amount includes penalties, accrued interest, and recovery costs related to the proceedings.The penalty component alone amounts to ₹8,00,000.00. This figure was imposed by the Quasi-Judicial Authority (QJA) vide Order No. QJA/MN/IVD/ID7/31947/2025-26 dated December 31, 2025, concerning the specific trading activities in DU Digital Technologies Limited stock.
Furthermore, an amount of ₹48,000.00 has been assessed for interest, calculated at 1% per month covering the period from January, 2026 to June, 2026. A minor recovery cost of ₹1,000.00 completes the total demanded sum.
Consequences of Non-Payment Under SEBI Regulations
The notice strictly directs Mr. Patel to remit the entire amount within fifteen days of receiving it. Payment must be made via direct credit through EFT/NEFT/RTGS to A/c No. SEBIRRDPEN9169 of ICICI Bank, IFSC code ICIC0000106.In the event of non-payment, SEBI is empowered to recover the money using several stringent methods defined by law. These recovery methods include the attachment and sale of movable property, the attachment of bank accounts, or even arrest and detention in prison.
Restrictions on Assets for Defaulting Party
The document also places significant operational constraints on Mr. Patel regarding his assets. As per Explanation 1 to Section 28A of the SEBI Act, any direct or indirect transfer of his property or monies held in bank accounts to his spouse or minor child or son's wife or son's minor child, provided it is not for adequate consideration after December 31, 2025, will be deemed as his own for recovery purposes.Moreover, he has been advised that upon service of this notice, he is not competent to mortgage, charge, lease or otherwise deal with any property belonging to him without express permission from the Recovery Officer. Any such transfer would consequently be deemed void under Rule 16 of the Second Schedule to the Income-tax Act, 1961 read with Section 28A of the SEBI Act.
The notice specifies that confirmation of any e-payment must be sent in a detailed format to The Recovery Officer at SEBI Bhavan-II in Mumbai or via email. Failure to provide this confirmation means the credited amounts will not be accounted towards his dues.
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