SEBI issues recovery notices against four in DU Digital scrip case

The Enforcement Action

The Securities and Exchange Board of India (SEBI) has begun recovery proceedings against four individuals in connection with trading in the scrip of DU Digital Technologies Limited, now DU Digital Global Limited. In a set of Notices of Demand dated 2 July 2026, the regulator invoked recovery certificates numbered 9190 to 9193 of 2026, each naming a separate person and each described as arising "in the matter of trading activities of certain entities" in that scrip.

The four notices name Girish Kantilal Parmar (PAN AUDPP6127A) under RC No. 9190, Dhaval Girishbhai Parmar (PAN EPZPP2397F) under RC No. 9191, Sagarkumar Pravinchandra Dataniya (PAN BJIPD7414F) under RC No. 9192, and Jigneshkumar Purshottamdas Patel (PAN AQEPP8019J) under RC No. 9193. Each Notice of Demand was posted in SEBI's recovery-proceedings section on 2 July 2026.

A Notice of Demand under a recovery certificate is the step SEBI takes to collect amounts that remain unpaid after an earlier enforcement order. It formally calls on the named party to pay the certified dues and signals that the recovery officer may proceed to attach assets, bank accounts or securities if the demand is not met. The individual sums certified are set out in each respective notice.

Background

The recovery certificates flow from SEBI's enforcement action in the DU Digital Technologies matter, which the notices frame as concerning "trading activities of certain entities" in the company's shares. DU Digital Technologies, since renamed DU Digital Global Limited, is the listed entity at the centre of that matter.

Recovery proceedings of this kind follow a defined sequence. SEBI first passes an order in the underlying matter, typically imposing a penalty or directing disgorgement of gains. Where the party does not pay within the time allowed, SEBI's recovery officer draws up a recovery certificate quantifying the dues, and a Notice of Demand is then issued against the named defaulter. The 2 July notices place these four individuals at that demand stage.

SEBI has not, in these notices, recorded any fresh finding of wrongdoing; the notices are collection instruments tied to the earlier order in the matter. The individuals named retain the appeal and objection rights that attach to recovery under the securities law framework. There is no public indication so far that any of the four has responded to the latest notices.

What It Means

For ordinary investors, recovery proceedings are a reminder that SEBI's orders do not end at the point of a penalty; the regulator has statutory machinery to pursue unpaid dues, including attachment of accounts and securities. That machinery exists in part to fund the disgorgement and investor-protection remedies that SEBI orders can direct.

The matter also underlines the value of checking who you are dealing with in the market. Any investor can verify whether an intermediary, adviser or research analyst is registered by searching the registered-entity lookups on the SEBI website, and can read enforcement orders and recovery notices in the Enforcement section. Scrutinising unusually sharp price or volume moves in thinly traded scrips, and treating unsolicited "sure profit" tips with caution, remain the most practical defences against manipulation-style schemes.

None of this establishes guilt. A recovery notice concerns collection of dues arising from a prior order; the underlying findings, and any penalty, are matters that the affected parties can and do contest through the appellate process. Readers should treat the four individuals as named in a SEBI recovery action, not as convicted of any offence.

FAQ

What exactly did SEBI do?

SEBI issued four Notices of Demand dated 2 July 2026 under recovery certificates numbered 9190 to 9193 of 2026. Each notice names one individual and calls for payment of dues certified in the matter of trading activities in the scrip of DU Digital Technologies Limited, now DU Digital Global Limited.

Does this mean the people named are guilty?

No. A Notice of Demand is a step to recover money said to be owed under an earlier order, not a criminal conviction. The named individuals retain the right to object to the recovery and to pursue the appeals available under the securities law framework. Due process continues.

Can the action be challenged?

Yes. SEBI's substantive orders can be appealed to the Securities Appellate Tribunal (SAT), and recovery steps carry their own objection routes before the recovery officer. Parties who believe a demand is wrongly quantified or otherwise defective can raise those objections through the prescribed channels.

How can I check if a broker or adviser is registered?

Use the registered-entity search tools on the SEBI website, sebi.gov.in, which let you confirm whether a broker, investment adviser or research analyst holds a valid registration before you deal with them.

Where can I read the official notices?

Each Notice of Demand is published in the recovery-proceedings pages of SEBI's Enforcement section at sebi.gov.in, indexed by recovery certificate number and the name of the person concerned.

This report is based on the official SEBI Notice of Demand dated 2 July 2026 under RC No. 9193 of 2026, published in SEBI's recovery-proceedings section. The related notices under RC Nos. 9190 to 9192 of 2026 were posted the same day.