Police Recommended to Further Investigate Misuse of Insurance Company Funds in Share Market Manipulation
The Nepal Securities Board has uncovered that Deepak Bhatt and his group misused nearly NPR 400 crore of insurance company funds to manipulate the stock market. The Board has accused Bhatt and others of fraudulent trading under Sections 96 and 98 of the Securities Act 2063, recommending legal action against them. According to Board sources, considering weaknesses identified during the investigation, the management committee has decided to recommend appropriate measures to relevant authorities. April 22, Kathmandu.
The investigative report by the Nepal Securities Board reveals persistent misuse of insurance company funds in the stock market. During an ongoing money laundering investigation, the Board’s supervision department concluded that Bhatt and his group misappropriated about NPR 400 crore from various insurance companies to manipulate share transactions. These insurance companies are public limited entities with significant public investment.
The Board discovered that Bhatt’s group exploited funds from insurance companies where they held major shareholdings to conduct share trading. Besides Nepal Re-Insurance and Himalayan Re-Insurance, the investigation also covered various micro-insurance firms, investment companies, and shares of business families connected to Bhatt. The probe found that Bhatt purchased shares at low prices through personal and private companies and then inflated their values before selling them to several insurance companies.
The Board has recommended the Central Police Department initiate an investigation into the individuals and institutions involved. The inquiry also suggests the Insurance Authority, the Money Laundering Investigation Department, and Nepal Police conduct further investigations and take necessary action. Shubhi Agrawal, wife of Sulabh Agrawal—currently in custody amidst a money laundering probe—is also referenced. Sulabh is chairman of Himalayan Life Insurance Company.
