Description

Securities Appellate Tribunal grants conditional stay on SEBI's one-year debarment order against Vyas Jitendrakumar Hasmukhlal HUF, subject to deposit of 50% of penalty amount within four weeks, in connection with trading activities in Du Digital Technologies Limited (now Du Digital Global Limited).

Summary

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

Key Points

  • SAT admitted Appeal No. 32 of 2026 filed by Vyas Jitendrakumar Hasmukhlal HUF against SEBI
  • Appellant No. 1 carried out one trade; Appellant No. 2 carried out two trades in the subject scrip
  • 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
  • The deposited amount will be held in an interest-bearing account by SEBI
  • SEBI has been granted six weeks to file its reply; rejoinder (if any) to be filed within three weeks thereafter
  • Next hearing scheduled for 06 May 2026

Regulatory Changes

No new regulatory changes introduced. This circular communicates a SAT interim order modifying the enforcement effect of an existing SEBI debarment direction against specific noticees in the Du Digital Global Limited trading matter.

Compliance Requirements

  • Appellant (Vyas Jitendrakumar Hasmukhlal HUF): Must deposit 50% of the penalty amount within four weeks from 13 February 2026 to maintain the stay on debarment.
  • SEBI: Must file reply within six weeks from 13 February 2026; must place the deposited penalty amount in an interest-bearing account.
  • Market Participants / Brokers: Should note the conditional reinstatement of trading eligibility for the appellant entities subject to the deposit condition being fulfilled.

Important Dates

  • 13 February 2026: SAT order date; four-week deposit deadline runs from this date
  • Deposit Deadline (approx. 13 March 2026): 50% of penalty must be deposited within four weeks of 13 February 2026
  • SEBI Reply Deadline (approx. 27 March 2026): Six weeks from order date
  • Rejoinder Deadline (approx. 17 April 2026): Three weeks after SEBI’s reply
  • 06 May 2026: Next hearing date before SAT

Impact Assessment

The impact is limited to the specific entities involved in this enforcement action. The conditional stay provides temporary relief to the appellant from the one-year debarment, allowing trading activity to resume provided the deposit condition is met. The outcome of the appeal will determine whether the penalty and debarment are upheld, modified, or set aside. Broader market impact on Du Digital Global Limited’s scrip is minimal, as the matter pertains to past trading activities of identified entities rather than any ongoing corporate or structural change.

Impact Justification

Enforcement action involving debarment and financial penalty against specific entities; SAT stay limits immediate impact but signals ongoing regulatory scrutiny of trading activities in Du Digital Global Limited.