SEBI issued a Notice of Demand dated June 29, 2026, under Recovery Certificate No. 9176 of 2026, against Nikunj Sureshchandra Shah. The notice relates to trading activities of certain entities in the scrip of DU Digital Technologies Limited, now renamed DU Digital Global Limited. This recovery proceeding follows SEBI's adjudication order imposing monetary penalties or disgorgement. The RC mechanism enables SEBI to recover dues as arrears of land revenue under Section 28A of the SEBI Act, 1992.

SEBI's recovery proceedings under RC No. 9176 of 2026 illustrate a critical enforcement mechanism that examiners frequently test. When an entity fails to pay penalties or disgorgement amounts ordered by SEBI's Adjudicating Officer or the Securities Appellate Tribunal (SAT), SEBI invokes Section 28A of the SEBI Act, 1992, which empowers the Board to issue a Recovery Certificate and recover dues as if they were arrears of land revenue.

In this case, the underlying matter involves alleged manipulative trading in the scrip of DU Digital Technologies Limited (now DU Digital Global Limited). SEBI's investigation likely identified connected entities engaging in coordinated buy-sell transactions, price rigging, or circular trading — all violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and SEBI (Prohibition of Insider Trading) Regulations, 2015.

Nikunj Sureshchandra Shah, named as the demand respondent, faces recovery action because the underlying penalty/disgorgement order has presumably attained finality or the appeal period has elapsed without compliance. The RC is drawn, and a Notice of Demand is served — after which SEBI can attach and sell movable/immovable property through the district collector mechanism.

This case demonstrates SEBI's evolving enforcement posture: moving beyond consent orders toward hard recovery in market manipulation cases involving mid-cap and small-cap scrips, which are particularly vulnerable to pump-and-dump schemes.