Description

Securities Appellate Tribunal admits appeal by Vyas Jitendrakumar Hasmukhlal HUF against SEBI, granting conditional stay on one-year debarment subject to deposit of 50% of penalty amount within four weeks.

Summary

The Securities Appellate Tribunal (SAT), Mumbai has admitted Appeal No. 32 of 2026 filed by Vyas Jitendrakumar Hasmukhlal HUF against SEBI in relation to trading activities in the scrip of Du Digital Technologies Limited (now Du Digital Global Limited). The SAT has granted a conditional stay on the one-year debarment ordered by SEBI, subject to the appellant depositing 50% of the penalty amount within four weeks from 13 February 2026.

Key Points

  • Appeal No. 32 of 2026 filed by Vyas Jitendrakumar Hasmukhlal HUF against SEBI admitted by SAT on 13 February 2026
  • Misc. Application Nos. 124 and 125 of 2026 filed alongside the main appeal
  • Appellant No. 1 carried out one trade; Appellant No. 2 carried out two trades in the scrip of Du Digital Technologies Limited (now Du Digital Global Limited)
  • SEBI’s one-year debarment order is stayed conditionally pending appeal outcome
  • 50% of the penalty amount must be deposited within four weeks from 13 February 2026 (i.e., by approximately 13 March 2026)
  • The deposited amount will be held in an interest-bearing account by SEBI
  • SEBI has been granted six weeks to file its reply; rejoinder by appellant to follow within three weeks thereafter
  • Next hearing scheduled for 06 May 2026

Regulatory Changes

No new regulatory changes introduced. This circular reflects the dissemination of a SAT appellate order directing a conditional stay on an existing SEBI enforcement action (debarment) against the named HUF entity in connection with alleged irregular trading in Du Digital Technologies Limited (now Du Digital Global Limited).

Compliance Requirements

  • Appellant (Vyas Jitendrakumar Hasmukhlal HUF): Must deposit 50% of the SEBI-imposed penalty amount within four weeks from 13 February 2026 to avail the stay on debarment
  • SEBI: Must file its reply within six weeks from 13 February 2026; must place the deposited amount in an interest-bearing account pending appeal outcome
  • Exchanges/Depositories: Must give effect to BSE’s dissemination of this SAT direction as applicable

Important Dates

  • 13 February 2026: Date of SAT order
  • ~13 March 2026: Deadline for appellant to deposit 50% of penalty amount (four weeks from order date) to activate the stay
  • ~27 March 2026: Deadline for SEBI to file reply (six weeks from order date)
  • ~17 April 2026: Deadline for appellant’s rejoinder, if any (three weeks after SEBI’s reply)
  • 06 May 2026: Next hearing date before SAT

Impact Assessment

The market impact of this order is limited to the specific named entities. The conditional stay provides temporary relief to Vyas Jitendrakumar Hasmukhlal HUF from SEBI’s one-year debarment, but this relief is contingent on timely deposit of 50% of the penalty. The scrip involved — Du Digital Global Limited — may see minor attention from market participants monitoring enforcement outcomes. The broader trading community is unaffected. The final outcome remains subject to the full hearing scheduled for May 2026.

Impact Justification

SAT appeal affects only specific named entities (Vyas Jitendrakumar Hasmukhlal HUF) with limited market-wide impact; conditional stay reduces immediate enforcement effect but the underlying SEBI penalty and debarment remain subject to outcome of appeal.