By Our Reporter
The investigation team has found serious irregularities in bond transactions related to Deepak Bhatt. According to preliminary investigations, he systematically inflated bond prices by using a network involving himself, his family members, and affiliated companies.
On Kartik 16, 2082, Bhatt purchased 104,403 units of a bond named NIMBD 90 from Himalayan Reinsurance Company. Within a few days, on Kartik 23 and 24, he sold the same bonds to the HLI Large Cap Fund, managed by Himalayan Investment Banker, in which his wife Ayushma Nepal is involved.
This pattern shows that Bhatt bought bonds at a lower price and sold them to his own affiliated entity for profit. The investigation committee has interpreted this as part of a deliberate scheme to mislead investors and artificially increase prices.
A similar pattern was observed in another bond named SBIDB 3. Bhatt purchased 44,000 units on Kartik 16, 2082 and sold them to the same fund on Kartik 23. The report concludes that he repeatedly conducted transactions within his own sphere of influence using the same model.
Involvement of Other Business Figures
Along with Deepak Bhatt, the Securities Board’s investigation committee has identified the involvement of businesspersons Sulabh Agrawal, Raj Bahadur Shah, Rishiraj More, and Shekhar Golchha, among others, in bond and share trading.
The report concludes that Agrawal, Shah, and More, like Bhatt, traded shares without making advance payments. By taking shares into their accounts without full payment, they helped create artificial demand in the market, thereby increasing prices.
The investigation also found the involvement of institutions such as Himalayan Reinsurance, Himalaya Securities, Himalayan Capserv, HLI Large Cap Fund, and companies including Nepal, Guardian, Crest, Liberty, and Protective Micro Insurance. Funds belonging to Shekhar Golchha and Rohit Gupta were also used.
Use of Common IP Addresses
The transactions of these individuals and entities were found to have been conducted from the same IP addresses (202.166.206.242 and 10.112.1.211). This indicates that the Trade Management System was controlled by a single individual.
In some cases, fake transactions were carried out without actual transfer of ownership. The committee concluded that transactions between entities such as Himalayan Investment Banker (with 75% ownership by Himalayan Life Insurance) and companies fully or largely owned by Himalayan Reinsurance were merely “paper transactions” (fraudulent trades).
Recommendation for Further Investigation
Concluding that influential individuals and companies were involved in artificially inflating share prices, the investigation committee has recommended further inquiry by the police.
According to the report, Deepak Bhatt and Sandeep Chachan, CEO of Bhirkuti Stock Broking Company, have violated several provisions of the Securities Act, 2063. The committee has suggested forwarding the case to the Police Headquarters for investigation into illegal activities in the stock market.
The report also notes that Sulabh Agrawal, Rishiraj More, and Raj Bahadur Shah played roles in raising the share prices of certain companies. Shekhar Golchha and Rohit Gupta are also said to have acted as facilitators.
Funds from institutions such as Himalayan Reinsurance, Himalayan Capital Services, Nepal Micro Insurance, Himalaya Securities, and HLI Large Cap Fund were used in these activities.
The report specifically highlights their involvement in artificially inflating the share price of Nepal Reinsurance. It also points out that share transactions conducted by institutions like Himalayan Life Insurance and Himalayan Investment Banker appear suspicious and may have violated the law.
The investigation further reveals that Bhatt’s network was active in raising the share price of NLG Insurance Company. Entities involved include Himalayan Reinsurance, Himalayan Investment Banker, HLI Large Cap Fund, Himalayan Capserv, various micro-insurance companies, and Himalayan Life Insurance.
The committee concludes that these actions may constitute serious offenses under Sections 94, 95, 96, and 98 of the Securities Act, 2063.
Similarly, collusion involving Sulabh Agrawal, Rishiraj More, and Sandeep Chachan was found in efforts to increase the share price of Guardian Micro Life Insurance. Himalayan Reinsurance and HLI Large Cap Fund were also involved.
The report concludes that stock prices were manipulated through collusion and recommends handing over all concerned parties to the police for further investigation.
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