SEBI Zeroes In: Banks and Depository Ordered to Attach Accounts of Nikunj Shah Over DU Digital Technologies Penalty

SEBI Zeroes In: Banks and Depository Ordered to Attach Accounts of Nikunj Shah Over DU Digital Technologies Penalty​

The Securities and Exchange Board of India (SEBI) has initiated significant recovery proceedings against Nikunj Sureshchandra Shah. The regulator issued multiple notices of attachment on July 22, 2026, targeting the personal accounts and securities holdings of Mr. Shah related to trading activities involving DU Digital Technologies Limited (now operating as DU Digital Global Limited).

The regulatory action stems from a Recovery Certificate No. 9176 of 2026 dated June 29, 2026. This certificate details the total dues owed by Mr. Shah, which amount to ₹6,37,000.00, along with associated interest and costs.

SEBI Orders Attachment of Bank and Post Office Accounts​

The notice directs all banks in India and all post offices to immediately attach specific accounts belonging to Nikunj Sureshchandra Shah. This decision was made due to the defaulter failing to clear a previous Notice of Demand dated June 29, 2026.

The total dues are composed as follows:

• Penalty imposed by the Adjudicating Officer (AO): ₹6,00,000.00.
• Interest from January 2026 to June 2026 @ 1% p.m.: ₹36,000.00.
• Recovery cost: ₹1,000.00.

The attachment order ensures that the regulator can realize the amount due under the certificate. The notice specifically mandates the attachment of all accounts and lockers held by Mr. Shah, whether singly or jointly.

Financial Restrictions on Attached Accounts​

A key directive issued by SEBI is that no debit shall be made in the attached bank accounts to the extent of the total dues until further orders are received from the Recovery Officer. However, any credits received into these accounts may still be permitted.

Banks and post offices have been instructed to provide critical documentation within 15 days. This includes complete details of all accounts and lockers held by Mr. Shah with their institution. They must also furnish copies of the account statements for the latest one year regarding all attached accounts.

Securities and Demat Folios Are Attached Too​

Beyond banking institutions, SEBI has also issued notices to depositories and mutual fund providers to attach the securities holdings of Nikunj Sureshchandra Shah. This secondary action targets the Demat Accounts and Mutual Fund Folio(s) held by Mr. Shah.

The attached funds—comprising bank accounts, post office accounts, and financial securities—are collectively required to recover the full amount of ₹6,37,000.00. The notice emphasizes that while debits are restricted on the attached assets, credits may still be allowed into those specific folios or accounts.

Compliance and Next Steps for Financial Institutions​

All notified financial institutions have been directed to follow strict compliance protocols as per SEBI Act, 1992. They must also be prepared to instantly attach any new accounts or folios created by Mr. Shah post the issuance of this notice.

The Recovery Officer, Kirtikumar Jadhav, has mandated that the banks and post offices ensure that no proceeds are recovered or demanded from these specific attached accounts until further instructions are provided by SEBI. Failure by the defaulter to respond within 15 days will be interpreted as having no such bank account or balance with their institution.