SEBI Issues Stern Notice of Demand Against Individual for Illegal Trading Gains in DU Digital Global Limited Scrip

SEBI Issues Stern Notice of Demand Against Individual for Illegal Trading Gains in DU Digital Global Limited Scrip​

The Securities and Exchange Board of India (SEBI) has issued a formal Notice of Demand against Ankit Ajitbhai Panchal regarding unlawful trading activities. The enforcement action stems from transactions involving the scrip of DU Digital Technologies Limited, which has since been rebranded as DU Digital Global Limited.

The notice, dated July 15, 2026, was issued under RC No. 9222. It highlights a rigorous crackdown on market integrity and regulatory non-compliance within the domestic securities market.

Breakdown of Disgorgement Order and Penalties​

SEBI has demanded a total payment of ₹5,85,716.21 from Ankit Ajitbhai Panchal to recover unlawful gains. The financial breakdown includes a primary disgorgement order for ₹5,46,463.75, which was imposed by the Quasi-Judicial Authority on December 31, 2025.

In addition to the principal amount, the individual is liable for interest of ₹38,252.46 accrued from January 2026 to July 2026 at a rate of 1% per month. The total demand also includes ₹1,000.00 in specific recovery costs.

Strict Enforcement Mechanisms and Recovery Actions​

The regulatory authority has mandated that the full amount be settled within 15 days of the notice receipt via direct credit through EFT, NEFT, or RTGS to a dedicated SEBI account at Bank of India. Failure to comply with this deadline will trigger severe enforcement measures under Section 28A of the SEBI Act and corresponding sections of the Income-tax Act, 1961.

SEBI has explicitly outlined several punitive actions for non-payment, including the attachment and sale of movable and immovable property. The regulator also reserves the right to freeze bank accounts, appoint a receiver for property management, or even pursue arrest and detention in prison.

Restrictions on Asset Transfers and Property Management​

To prevent the siphoning of funds during the recovery process, SEBI has placed stringent restrictions on the individual's financial dealings. The notice stipulates that the defaulter is not permitted to mortgage, charge, lease, or deal with any personal property without explicit permission from the Recovery Officer.

Any such unauthorized transfers will be deemed void under the rules of the Second Schedule to the Income-tax Act, 1961. Furthermore, any attempt to transfer property to a spouse or minor child after December 31, 2025, without adequate consideration, will be treated as an attempt to evade recovery.

Reporting and Compliance Verification​

The enforcement process requires a formal confirmation of e-payments submitted to the Recovery Division IV of SEBI. Payments made without proper confirmation in the prescribed format will not be accounted toward the outstanding dues.

SEBI has also coordinated with CDSL, NSDL, and all Indian Mutual Funds to provide immediate holding details for the individual. This synchronized approach ensures that the regulator can effectively identify and secure assets linked to the identified trading irregularities.