SEBI Issues Massive Demand Notice Against Entity in DU Digital Technologies Stock Trading Scandal

SEBI Issues Massive Demand Notice Against Entity in DU Digital Technologies Stock Trading Scandal​

The Securities and Exchange Board of India (SEBI) has formally issued a Notice of Demand against Jigneshkumar Purshottamdas Patel concerning trading activities related to DU Digital Technologies Limited, now known as DU Digital Global Limited. The notice mandates the immediate recovery of a substantial sum, totaling ₹5,42,222.72, along with accrued interest and costs.

SEBI Demands Recovery Amid Trading Irregularities​

The Notice of Demand, dated 02/07/2026, is issued under Certificate No. 9193 of 2026 by SEBI Bhavan-II in Mumbai. The demand relates to an Order for Disgorgement imposed on Mr. Patel by a Quasi-Judicial Authority (QJA) vide Order No. QJA/MN/IVD/ID7/31947/2025-26, which was dated 31.12.2025.

Mr. Jigneshkumar Purshottamdas Patel, residing in Ahmedabad, Gujarat, is the entity directed by SEBI to satisfy these financial obligations. The proceedings are conducted under Section 28A of the Securities and Exchange Board of India Act, 1992, read with sections of the Income Tax Act, 1961.

Detailed Breakdown of Dues Against Entity​

The total amount owed includes several components relating to the regulatory non-compliance. The disgorgement order imposed by the Quasi-Judicial Authority amounts to ₹5,05,815.63. To this principal amount, interest has been levied at 12% p.a. from January, 2026, leading to a charge of ₹35,407.09.

The final calculation includes recovery costs amounting to ₹1,000.00. Consequently, the total due payable by Mr. Patel to SEBI is confirmed at ₹5,42,222.72 (Five Lakh Forty-Two Thousand Two Hundred Twenty-Two Rupees and Seventy-Two Paisa).

Strict Compliance Timeline Mandated By Regulator​

The Notice explicitly directs that the entire amount must be paid within 15 days of receiving the notice. Payment methods accepted include direct credit via EFT/NEFT/RTGS to A/c No. SEBIRRDDSG9193 of Bank of India, IFSC code BKID00VAN04, or through the online 'Recovery Payment' module on the official SEBI website.

Failure to comply with this directive will result in SEBI initiating recovery actions. The notice outlines several methods of recovery available if payment is defaulted upon. These include the attachment and sale of movable or immovable property.

Severe Consequences of Non-Payment Outline​

In addition to standard recovery procedures, SEBI has issued stern warnings regarding asset management and transfers. Any direct or indirect transfer of Mr. Patel's property or monies held in bank accounts to a spouse, minor child, son's wife, or son's minor child, which occurs after December 31, 2025, shall be deemed his property for recovery purposes.

Furthermore, as per the notice, Mr. Patel is prohibited from mortaging, charging, leasing, or otherwise dealing with any of his property without prior permission from the Recovery Officer. Any such transaction would be considered void under the relevant SEBI and Income-tax rules.

Regulatory Stakeholders Requested to Provide Details​

The notice has been copied to various regulatory bodies including CDSL, NSDL, and all Mutual Funds in India. These parties are requested to immediately provide holding details of Jigneshkumar Purshottamdas Patel (AQEPP8019J) upon receipt. This ensures that any sale or redemption request received from the defaulter after the notice date can be effectively addressed by the Recovery Officer.