SEBI Seizes Bank and Demat Accounts: ₹6.37 Lakh Fine Imposed in DU Digital Scrip Case

SEBI Seizes Bank and Demat Accounts: ₹6.37 Lakh Fine Imposed in DU Digital Scrip Case​

Regulatory Action Targets Trading Misconduct​

Securities and Exchange Board of India (SEBI) has issued comprehensive notices of attachment against Madhu Kumari Bairwa concerning trading activities related to DU Digital Technologies Limited, now known as DU Digital Global Limited. The action comes after a Recovery Certificate was drawn up in the matter.

The proceedings, conducted under RC No. 9178 of 2026 and A.P. No. 15576 of 2026, detail the seizure of various financial instruments held by the individual defaulter. SEBI utilized its powers conferred under section 28A (1) read with section 226 of the SEBI Act, 1992.

Financial Liability Details​

The attachment order pertains to a total outstanding amount due against Madhu Kumari Bairwa. The sum mandated for recovery stands at ₹6,37,000.00. This financial liability is comprised of the penalty imposed and accumulated interest.

Details of the dues include:

• Penalty: A penalty of ₹6,00,000.00 was imposed by an Authorized Officer (AO) via Order No. QJA/MN/IVD/ID7/31947 / 2025-26 dated December 31, 2025.
• Interest: ₹36,000.00 represents the interest accrued from January, 2026 to June, 2026 at a rate of 1% p.m.
• Recovery Cost: The remaining dues amount to ₹1,000.00.

Scope of Attachment Covers Banks and Digital Assets​

The attachment mandates are far-reaching, encompassing virtually all financial holdings of Madhu Kumari Bairwa. SEBI issued separate directives covering banks, post offices, and digital securities platforms.

Financial institutions are directed to attach:

• Bank Accounts: All accounts, including lockers, held by the defaulter across all banks in India.
• Post Office Accounts: All associated accounts held with Post Offices.
• Digital Assets: All Demat Accounts and Mutual Fund folios held by the individual.

Operational Mandates for Financial Institutions​

The notices stipulate strict operational changes for all involved financial intermediaries, including Principal Officers of Banks and CEOs of Mutual Funds in India. Immediate effect is given to the attachment order for all specified accounts and portfolios.

It was ordered that no debit shall be made against the attached accounts to the extent of the total dues until further orders are issued by the Recovery Officer of SEBI. However, any credits received into these seized accounts may still be allowed.

Compliance and Reporting Requirements​

Financial institutions have been given a specific 15-day timeframe to fulfill various reporting obligations related to the attachment proceedings. Banks must provide details on all accounts and lockers held, along with statements for the latest one year.

Similarly, Demat and Mutual Fund custodians are required to submit detailed information regarding all attached folios and accounts. If any institution receives no response within 15 days, it will be presumed that the defaulter holds no balance with them in respect of this matter.