SEBI issues recovery notice in DU Digital Global manipulation case
SEBI has issued a notice of demand under RC No. 9190 of 2026 to recover dues from Girish Kantilal Parmar, confirmed in its December 2025 final order in the DU Digital Global manipulation matter.
The Enforcement Action
The Securities and Exchange Board of India (SEBI) has moved to recover outstanding dues from Girish Kantilal Parmar (PAN AUDPP6127A) through a notice of demand dated 2 July 2026, issued under Recovery Certificate No. 9190 of 2026. The notice arises in what SEBI describes as the matter of "trading activities of certain entities in the scrip of DU Digital Technologies Limited (now DU Digital Global Limited)".
The recovery step follows SEBI's final order dated 31 December 2025 in the same matter. In that order the regulator imposed penalties totalling nearly Rs 1.85 crore across 26 entities and directed disgorgement of about Rs 98.78 lakh, together with interest at 12% per annum reckoned from 31 March 2023.
A notice of demand under a recovery certificate is an enforcement step, not a fresh finding. It directs the named person to pay a sum already confirmed in the underlying order. If the amount is not paid, SEBI's recovery officer may attach and sell assets, bank accounts and demat holdings to realise it. Appeal routes against the underlying order remain available.
Background
SEBI examined dealings in the scrip for the period up to 31 March 2023. Per the December 2025 order, the stock listed at about Rs 12 in August 2021 and rose roughly 2,467% to about Rs 296.05 by November 2022, a move the regulator found was not supported by the company's fundamentals.
SEBI found that a connected group executed "synchronised and circular trades", frequently at prices above the prevailing market rate, which inflated both volume and price. The regulator observed that during certain phases more than 90% of the opening trades involved intra-group transactions. It said it established the links between the parties through shared mobile numbers, common IP and MAC addresses, overlapping email IDs and repeated fund transfers.
The final order barred 26 entities from the securities market for periods ranging from one to 30 months and directed 21 of them to disgorge unlawful gains, with individual penalties reported between Rs 5 lakh and Rs 20 lakh. Girish Kantilal Parmar was among the entities named in that order. The present notice of demand seeks recovery of the amount confirmed against him.
What It Means
The action is a reminder that a market ban and a penalty are not always the final step. Where dues remain unpaid, SEBI pursues recovery, and its recovery officer can attach and auction bank accounts, demat holdings and other assets to realise the confirmed amount.
For ordinary investors, the episode underlines the risk in sharp, fundamentals-free rallies, particularly in thinly traded or SME-segment stocks. A rise of the scale SEBI described, detached from earnings, is a well-documented warning sign. Before buying such a stock, a reader can check whether the exchange has placed it under a surveillance framework such as the Additional Surveillance Measure or the Graded Surveillance Measure, both published on the BSE and NSE websites.
Readers can also verify any person or firm offering trading tips or portfolio services against SEBI's registered-intermediary records on sebi.gov.in, and report suspicious solicitation through SEBI's SCORES platform. Registration does not guarantee returns, but dealing only with registered intermediaries preserves an investor's formal recourse.
FAQ
What exactly did SEBI order?
SEBI issued a notice of demand dated 2 July 2026 under Recovery Certificate No. 9190 of 2026 against Girish Kantilal Parmar. It seeks recovery of dues confirmed in SEBI's final order of 31 December 2025 in the DU Digital Technologies matter, in which 26 entities faced penalties and disgorgement.
Does this mean the people named are guilty?
The final order records SEBI's findings after adjudication, but it is not a criminal conviction. Those named retain the right to challenge the order through the prescribed appellate process, and due process continues. This report attributes every characterisation of conduct to SEBI's own order.
Can the order be appealed?
Yes. A person aggrieved by a SEBI order may appeal to the Securities Appellate Tribunal (SAT) within the limitation period, and, on questions of law, onward to the Supreme Court. A recovery notice enforces the confirmed sum while any such appeal is pursued, unless a tribunal stays it.
How can I check if a stock is under surveillance?
The BSE and NSE publish lists of scrips under the Additional Surveillance Measure (ASM) and Graded Surveillance Measure (GSM) on their websites. These frameworks flag stocks with unusual price or volume behaviour and can carry tighter trading curbs, such as higher margins or trade-to-trade settlement.
Where can I read the official order?
Both the notice of demand and the December 2025 final order are published on SEBI's website, sebi.gov.in, under the enforcement section. The links appear in the source note below.
This report is based on the official SEBI notice of demand dated 2 July 2026 and SEBI's final order dated 31 December 2025 in the DU Digital Technologies matter. Underlying details were also reported by Moneylife.