SEBI Executes Asset Attachment as Trading Misconduct in DU Digital Global Technologies Reaches Critical Stage

SEBI Executes Asset Attachment as Trading Misconduct in DU Digital Global Technologies Reaches Critical Stage​

Securities and Exchange Board of India (SEBI) has moved decisively into asset attachment proceedings against Rathod Mahendrkumar, a matter stemming from trading activities related to DU Digital Technologies Limited, now known as DU Digital Global Limited. The actions involve the freezing of bank accounts, post office holdings, and critical Demat and Mutual Fund folios nationwide. This move signifies SEBI’s determination to recover outstanding dues owed by the defaulter following alleged market irregularities concerning the specified scrip.

Comprehensive Asset Attachment Ordered Against Defaulter​

The Recovery Officer of SEBI issued a series of notices of attachment on July 22, 2026. These proceedings were initiated after Rathod Mahendrkumar failed to settle outstanding dues related to his trading activities in DU Digital Global Limited stock. The attached assets include all accounts and lockers held by the defaulter with various banks across India.

The notice strictly orders that no debit shall be made against these specified bank accounts up to the extent of the total dues until further directions are received from SEBI's Recovery Officer. While debits are restricted, credits into the said accounts may still be allowed. Similar attachment orders have been issued targeting Post Office accounts held by the defaulter.

Demat and Mutual Fund Folios Brought Under Scrutiny​

In parallel to banking and postal attachments, notices of attachment were also directed towards all mutual fund companies and depository services in India. These proceedings specifically target Rathod Mahendrkumar's Demat account(s) and Mutual fund folio(s).

The purpose of the attachment is to prevent the defaulter from disposing of any securities or financial instruments held with mutual fund agencies. The notice confirms that no debit will be made against these accounts until SEBI issues further orders, though credits may be allowed. This multi-pronged regulatory attack highlights SEBI's broad jurisdictional reach in asset recovery cases involving market misconduct.

Breakdown of Financial Dues and Penalty Imposed​

The total amount due for recovery from Rathod Mahendrkumar amounts to ₹6,37,000.00 (Rupees Six Lakh and Thirty Seven Thousand Only). These dues arise from a Recovery Certificate No. 9181 of 2026, which was previously drawn up following the non-payment of demanded funds.

The total amount is itemized as follows: A penalty imposed by the Adjudication Officer (AO) amounts to ₹6,00,000.00. This penalty relates to the trading activities in DU Digital Technologies Limited, specifically citing Order No. QJA/MN/IVD/ID7/31947/2025-26 dated December 31, 2025. Further dues include ₹36,000.00 representing interest from January, 2026 to June, 2026 at a rate of 1% p.m., and a Recovery cost amounting to ₹1,000.00.

Obligations Under the Attachment Order​

All concerned financial institutions have been directed by SEBI to provide specific documentation within 15 days. This includes copies of account statements for the latest one year across all held accounts and folios. Banks must also furnish details of all accounts and lockers held by Rathod Mahendrkumar, along with any loan or advance accounts.

The notices explicitly state that if no response is received from the concerned financial entity within 15 days, it will be presumed that the defaulter has no such bank account or balance in their institution. SEBI has also directed institutions to immediately attach any new accounts or folios opened by the defaulter subsequently and inform the Recovery Officer accordingly.