Nepal Security Board Names Top Businesspersons in Alleged Share-Rigging Scandal

The recent revelations from the Securities Board of Nepal (SEBON) regarding an alleged share-rigging scheme have sent shockwaves through Nepal's business community. The investigation, spurred by a money laundering probe, has brought to light a complex web of transactions involving high-profile businesspersons and institutions, raising serious questions about market integrity.

According to the report, individuals like Deepak Bhatta and Sulav Agrawal, along with prominent figures such as Raj Bahadur Shah of Jawalakhel Group of Industries, and institutions like Himalayan Reinsurance Limited, are at the center of these allegations. The accusations range from artificially inflating share prices through fictitious transactions to engaging in insider trading, all while operating on substantial credit without payment, leaving brokers with billions in outstanding dues.

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Bhatta is accused of buying shares on credit from Bhirkuti Stock Broking Company (Broker No. 55), settling and clearing the shares through the broker into his DEMAT account without making payment, thereby artificially increasing share prices by purchasing large volumes of shares on credit, engaging in insider trading, and conducting fictitious transactions.

What is particularly concerning for Nepal's financial sector is how these alleged schemes exploit loopholes and potentially undermine investor confidence. While international media might focus on the financial mechanics, for us in Nepal, this is about the trust placed in our market leaders and regulatory bodies. The SEBON's proactive investigation, despite the involvement of influential names, signals a commitment to accountability. However, the full extent of the damage and the necessary reforms to prevent future occurrences remain critical concerns for the stability and growth of our economy.

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From July 21, 2025, to March 15, 2026, Bhatta purchased shares worth Rs3.80 billion and sold shares worth Rs930.59 million. In this period, the broker did not receive any payment from Bhatta. Even now, Rs2.89 billion remains outstanding.