SEBI Unleashes Financial Enforcement: Demand Notice Issued to Trader in Multi-Lakh Rupee Disgorgement Case
Securities and Exchange Board of India (SEBI) has issued a formal Notice of Demand against Sagarkumar Pravinchandra Dataniya. The notice relates to alleged trading activities involving the scrip of DU Digital Technologies Limited, now known as DU Digital Global Limited. This stringent regulatory action mandates the recovery of a substantial sum from the individual trader.The Certificate No. 9192 of 2026 formally certifies that a total amount of Rs. 3,91,725.66 is due to SEBI. This demand encompasses the principal disgorgement amount, accumulated interest, and incurred recovery costs. The notice mandates payment within fifteen days of receiving the official documentation.
Breakdown of Financial Dues Against Trader
The detailed breakdown provided in the Notice outlines the composition of the outstanding debt. The core Disgorgement amount, which was originally imposed by the Quasi-Judicial Authority (QJA) vide Order No. QJA/MN/IVD/ID7/31947/2025-26, stands at Rs. 3,65,164.17.In addition to the principal disgorgement, there is an outstanding interest component amounting to Rs. 25,561.49. This interest accrues at a rate of 12% per annum, calculated from January 2026 to July 2026. The notice also lists recovery costs totaling Rs. 1,000.00.
Enforcement Measures and Compliance Directives
SEBI has laid out severe consequences in the event of non-payment. If the dues are not paid within the stipulated timeframe, the Recovery Officer is authorized to proceed with various recovery methods. These actions include the attachment and sale of movable property, the attachment of bank accounts, or even arrest and detention in prison.Furthermore, SEBI has issued specific warnings regarding asset transfers. Any direct or indirect transfer of the trader's property or money held in bank accounts to a spouse or minor child or son's wife or son's minor child, occurring on or after December 31, 2025, is deemed for recovery purposes as per Section 28A of the SEBI Act.
Mandates and Next Steps for Compliance
The notice strictly advises the recipient that upon service of the document, they are not competent to mortgage, charge, lease, or otherwise deal with any property belonging to them. Any such transfer without permission from the Recovery Officer will be deemed void as per Rule 16 of the Second Schedule to the Income-tax Act, 1961 read with Section 28A of the SEBI Act.The payment must be made through direct credit via EFT/NEFT/RTGS to A/c No. SEBIRRDDSG9192 of Bank of India or through the online 'Recovery Payment' module on the SEBI website. The Compliance Officer has stressed that without a formal confirmation of e-payment, any credits made will not be accounted toward the outstanding dues.
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