Description

Securities Appellate Tribunal (SAT) has admitted Appeal No. 32 of 2026 filed by Vyas Jitendrakumar Hasmukhlal HUF against SEBI's one-year debarment order, granting a stay subject to deposit of 50% of the 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 a SEBI order imposing a one-year debarment in connection with alleged irregular trading activities in the scrip of Du Digital Technologies Limited (now Du Digital Global Limited). The SAT has granted a conditional stay on the debarment, subject to the appellant depositing 50% of the penalty amount within four weeks. The deposited amount will be held in an interest-bearing account by SEBI pending the outcome of the appeal.

Key Points

  • Appeal No. 32 of 2026 admitted by SAT Mumbai on 13 February 2026
  • Appellant: Vyas Jitendrakumar Hasmukhlal HUF (represented by Advocate Vikas Bengani)
  • Respondent: SEBI (represented by Advocate Vyom Shah, i/b MDP Legal)
  • Appellant No. 1 carried out one trade; Appellant No. 2 carried out two trades in the scrip
  • SAT has stayed SEBI’s one-year debarment order conditionally
  • SEBI granted six weeks to file reply; appellant may file rejoinder within three weeks thereafter
  • Next hearing scheduled for 6 May 2026

Regulatory Changes

No new regulatory changes introduced. This circular communicates a SAT judicial order directing SEBI to implement a conditional stay on its debarment direction against the named noticee. BSE is disseminating the order as per SEBI’s direction to inform market participants.

Compliance Requirements

  • Appellant: Must deposit 50% of the penalty amount within four weeks from 13 February 2026 (i.e., by approximately 13 March 2026) to avail the stay on debarment.
  • SEBI: Must place the deposited amount in an interest-bearing account; must file its reply within six weeks of the order date.
  • BSE/Market Participants: No direct compliance action required; circular is for information and record purposes.

Important Dates

  • 13 February 2026: SAT order date; four-week clock for penalty deposit begins
  • ~13 March 2026: Deadline for appellant to deposit 50% of penalty to activate stay
  • ~27 March 2026: Approximate deadline for SEBI to file reply (six weeks from order)
  • ~17 April 2026: Approximate deadline for appellant’s rejoinder (three weeks after SEBI reply)
  • 6 May 2026: Next hearing date before SAT

Impact Assessment

The impact is limited to the specific noticee — Vyas Jitendrakumar Hasmukhlal HUF — and does not directly affect broader market operations or trading in Du Digital Global Limited. The conditional stay provides temporary relief from SEBI’s debarment, allowing the appellant to participate in markets while the appeal is adjudicated, provided the penalty deposit condition is met. Market participants in the scrip of Du Digital Global Limited (formerly Du Digital Technologies Limited) should note that SEBI’s underlying investigation findings regarding irregular trading activities remain under adjudication.

Impact Justification

SAT stay on SEBI debarment is significant for the named entity but has limited broader market impact; affects only the specific noticee's trading activities in Du Digital Global Limited.