SEBI bars 26 persons for manipulating DU Digital’s scrip

SEBI bars 26 persons for manipulating DU Digital’s scrip

Imposes Rs.1.87 crore penalty for dealing in unlawful practices

The Securities and Exchange Board of India (SEBI) has restricted 26 persons from accessing the capital markets for up to two years. It observed their collusion in the price manipulation of the shares of DU Digital Technologies Limited, which was incorporated as Diva Envitec Filtration Technologies Private Limited.

Thus, in a 142-page order, the market regulator directed the disgorgement of Rs.98.78 lakh gains as unlawful and imposes a fine of Rs.1.87 crore.

SEBI probed the scrip of DU Digital, listed on the National Stock Exchange’s (NSE’s) SME platform and noted the company's stock price surged by 1,393 percent from 26 August 2021 to 31 March 2023.

On 26 August 2021, the shares were listed at Rs.12 per share and closed at Rs.179.10. The scrip also closed at the highest price of Rs.296.05 (meaning, 2,467 percent of the listing price), on 11 November 2022.

The forfeiture of the unlawful gains (including the interest at the rate of 12 percent per annum) was calculated from 31 March 2023.

The market regulator ordered the investigation on finding the excessive rise in the price of the shares and noted that the 26 accused acted as a ‘group’. Applying deceptive trading strategies, they contributed to the artificial increase in the price and volume of DU Digital’s scrip.

Thus, on 14 July 2025, SEBI issued a Show Cause Notice to the individuals.

However, the 26 accused claimed that the trading activity in DU Digital’s scrip was consistently small and delivery-based. It was executed with the intention of investments.

They added that a common address or broker could not be summarized as a connection and the notice relied on circumstantial data without the specific trade-to-trade linkage proof.