Sebi bars 26 individuals, imposes ₹1.85 cr penalty in SME stock case

Mumbai, Jan 1, 2026 

In a 142-page order, the market regulator has also directed disgorgement of over Rs 98.78 lakh identified as illegal gains and imposed a penalty of Rs 1.85 crore on the individuals

The Securities and Exchange Board of India (Sebi) has barred 26 individuals from trading for alleged price manipulation in the scrip of DU Digital Global, an SME stock.

In a 142-page order, the market regulator has also directed disgorgement of over ₹98.78 lakh identified as illegal gains and imposed a penalty of ₹1.85 crore on the individuals.

The market regulator had conducted investigations in the matter suspecting violations, following a steep rise in the price of the scrip—from ₹12 per share in August 2021 to a high of ₹296.05 in November 2022.

Sebi noted that a group of connected traders had employed “deceptive trading strategies” contributing to the artificial increase in the price and volume in the scrip.

The investigation also showed that a few of these individuals had also been penalised in earlier orders by the regulator.

“When entities such as connected Noticees manipulate prices through coordinated trading, the investors bear the loss. The regulatory response must be sufficiently robust to deter similar conduct and to restore investor confidence in the integrity of SME segment listing and trading,” noted Sebi in the adjudicating order.

The regulator added that the synchronised trades or circular trades serve no economic purpose other than price and volume manipulation—and are injurious to the integrity of the securities market.

DU Digital, earlier known as DU Digital Technologies, was listed on NSE’s SME platform in August 2021. The regulator added that there were no positive corporate announcements which could legitimise the 2,467 per cent surge in the price in just a year.

The bar on dealing in the securities market imposed on the 26 individuals range from one year to 30 months.

[The Business Standard]