SEBI Orders Massive Asset Attachment Against Individual Amid DU Digital Trading Scrutiny

SEBI Orders Massive Asset Attachment Against Individual Amid DU Digital Trading Scrutiny​

SEBI has initiated aggressive recovery proceedings against Sanjay Savjibhai Parmar following scrutiny into his trading activities concerning the scrip of DU Digital Technologies Limited, now DU Digital Global Limited. The regulatory action involves a multi-pronged attachment order aimed at securing a substantial amount due to the board. This move signifies heightened focus by SEBI on market integrity and adherence to trading norms for entities involved in this specific stock.

The notices of attachment were issued on July 22, 2026, by Kirtikumar Jadhav, General Manager & Recovery Officer at the Securities and Exchange Board of India (SEBI). The proceedings are backed by a Recovery Certificate No. 9180 of 2026, totaling ₹6,37,000.00 owed by Parmar.

Sebi Directs Banks to Attach Accounts and Secure Dues​

A specific notice was issued to all banks in India regarding the attachment of accounts held by Sanjay Savjibhai Parmar. The action is necessitated by the fact that no amount has been paid towards the due dues, leading SEBI to believe that proceeds may be disposed of, potentially delaying recovery.

The total amount sought for recovery includes a penalty imposed on Parmar amounting to ₹6,00,000.00. This was levied following an order dated December 31, 2025, concerning his trading activities in the DU Digital scrip. The remaining dues consist of interest from January to June 2026 at 1% per month (₹36,000.00) and recovery costs (₹1,000.00).

The notice mandates that all accounts held by the defaulter—including joint accounts and lockers—are attached immediately. Furthermore, it directs banks not to debit any such account for these dues until further instructions are received from SEBI's Recovery Officer. Banks are also required to provide detailed statements of all accounts for the past year.

Post Office Accounts Are Subject to Attachment Order​

Parallel to the banking action, a separate notice was issued to the Head Postmaster of All Post Offices in connection with the recovery process. This order focuses on securing any financial holdings Parmar may have maintained through postal institutions.

The attachment order extends to all accounts and lockers held by Sanjay Savjibhai Parmar at any post office. Similar to the directive given to banks, no debit can be made against these attached post office accounts until further orders are issued by SEBI. The total amount mandated for recovery remains at ₹6,37,000.00 across the penalty, interest, and associated costs.

Demat And Mutual Fund Folios Are Targeted For Recovery​

SEBI also targeted the financial market infrastructure regarding Parmar’s securities and investment portfolios. Notices were issued to M/s. National Securities Depository Ltd. and M/s. Central Depository Services (1) Ltd., as well as all Mutual Funds in India. The objective is the immediate attachment of his Demat accounts and any mutual fund folios he holds.

The notices confirm that no amount has been settled against the Recovery Certificate No. 9180 of 2026. The regulatory body specified that while debits are halted until further notice, credits into the attached accounts may be allowed. These institutions have been directed to provide account details and confirmation of attachment within 15 days.

Compliance And Oversight Of Regulatory Notices​

The notices collectively represent SEBI's comprehensive attempt to manage risk and enforce compliance in light of the alleged irregular trading activities. The Recovery Officer has provided clear instructions to all concerned entities, requiring them to track any new accounts or folios opened by Parmar post-issuance of this notice.

This action is taken under Section 28A (1) and 11(2)(ia) of the SEBI Act, 1992, read with related sections of the Income-tax Act, 1961. The enforcement mechanism ensures that all financial institutions are actively involved in the recovery process until the full outstanding amount is settled against Sanjay Savjibhai Parmar.