The 142-page order was passed on Wednesday, December 31, following SEBI’s probe into DU Digital Technologies’ scrip listed on NSE’s SME platform. Sebi’s probe showed a 1,393% jump in the company’s share price between August 26, 2021 and March 31, 2023.
per share on August 26, 2021 at Rs. Listed at 12, the share traded at Rs. closed at 179.10. During this period, the scrip also on November 11, 2022 Rs. closed at a high of 296.05, which is 2,467% of the listing price, the order noted.
Disgorgement of ill-gotten gains is calculated with interest at the rate of 12% from March 31, 2023 till the date of this order.
The probe was conducted as share prices rose sharply and SEBI found that the 26 accused acted as a “group” and used deceptive trading strategies that contributed to an artificial increase in price and volume in DU Digital’s scrip.
After investigation, SEBI issued a Show Cause Notice (SCN) on July 14, 2025.
Originally incorporated as Diva Envitech Filtration Technologies Pvt Ltd, the company changed its name to DU Digital Technologies.
What did the accused argue?
In the arguments presented by the accused, it was stated that DU Digital’s trading activity in scrip was consistently low in volume,
Delivery-driven, and driven with a purely investment-driven objective.
It was also held that a mere common address or broker cannot create a connection without proof of a meeting of minds. Moreover, SCN relies on circumstantial data without necessarily proving specific trade-to-trade linkages.
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