A prominent share trader has been arrested on serious allegations of artificially inflating share prices and earning illegal profits in the NEPSE market.
Dipendra Agrawal, a well-known NEPSE investor, was detained by the Central Investigation Bureau (CIB) of Nepal Police under violations of the Securities Act, 2063.
Police sources confirm that Agrawal was arrested from Chundevi, Kathmandu Metropolitan City–4, for allegedly engaging in stock price manipulation within Nepal’s capital market. Authorities accuse him of disseminating misleading information to artificially boost the share price of a listed hydropower company on NEPSE, resulting in unlawful gains through share market manipulation.
The arrest followed a preliminary investigation report from the Securities Board of Nepal (SEBON), which uncovered evidence of false trading activities, price manipulation, and unfair influences on NEPSE stock prices. The probe determined that Agrawal‘s actions constituted market manipulation breaching capital market regulations in Nepal.
According to the SEBON findings, Agrawal bought shares of Joshi Hydropower Development Company Limited, a NEPSE-listed entity. By allegedly rigging the hydropower stock price, he reportedly secured illegal profits of around NPR 4.9 million (Rs. 49 lakh) via secondary market trading on NEPSE, as stated by police.
Agrawal faces charges under Section 97 (Ga) of the Securities Act, 2064, covering the publication of false or misleading information, deceptive practices, and fraudulent activities in the stock market. These are grave offenses under Nepal’s securities laws, designed to safeguard retail investors, promote fair trading, and uphold market integrity in NEPSE.
This high-profile case underscores rising issues of stock market manipulation in Nepal, especially in hydropower stocks, while highlighting the critical oversight by SEBON, Nepal Police, and regulators in curbing price rigging, monitoring NEPSE trading, and restoring investor confidence in Nepal’s capital market.
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