Description

Securities Appellate Tribunal admits appeal by Vyas Jitendrakumar Hasmukhlal HUF against SEBI and stays one-year debarment order, 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’s debarment order related 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, subject to the appellant depositing 50% of the penalty amount within four weeks from 13 February 2026.

Key Points

  • Appeal No. 32 of 2026 (along with Misc. Application Nos. 124 and 125 of 2026) admitted by SAT on 13 February 2026
  • Appellant is Vyas Jitendrakumar Hasmukhlal HUF; SEBI is the respondent
  • Appellant No. 1 carried out one trade; Appellant No. 2 carried out two trades in the scrip
  • SEBI’s one-year debarment order is stayed conditionally pending appeal outcome
  • SEBI is required to place the deposited penalty amount in an interest-bearing account
  • SEBI granted six weeks to file its reply; appellant may file rejoinder within three weeks thereafter
  • Next hearing scheduled for 06 May 2026

Regulatory Changes

No new regulatory changes introduced. This circular communicates the SAT’s interim order staying a SEBI enforcement action (debarment) in connection with alleged irregular trading in Du Digital Technologies Limited (now Du Digital Global Limited).

Compliance Requirements

  • Appellant: Must deposit 50% of the SEBI-imposed penalty amount within four weeks from 13 February 2026 (i.e., by approximately 13 March 2026) to maintain the stay on debarment
  • SEBI: Must file its reply to the appeal within six weeks from 13 February 2026; must place the deposited amount in an interest-bearing account
  • Appellant (rejoinder): May file rejoinder within three weeks after SEBI files its reply

Important Dates

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

Impact Assessment

The impact is limited and entity-specific. The stay provides temporary relief to the HUF appellant from a SEBI-imposed one-year debarment, allowing continued market participation during the appeal process conditional on partial penalty deposit. The matter concerns a small number of trades in Du Digital Global Limited and does not signal any broad market or systemic regulatory change. Market participants in the scrip should note that SEBI enforcement proceedings are ongoing and the final outcome remains subject to appeal adjudication.

Impact Justification

SAT interim stay on SEBI debarment order affects a specific individual/HUF with limited trades; impact is contained to the appellant rather than broad market participants.