Businessman Deepak Bhatta Implicated in Major Stock Market Manipulation Scandal

Kathmandu. Businessman Deepak Bhatta has been exposed for engaging in irregular trading and market manipulation within the securities market. The 'Preliminary Investigation and Supervision Report 2083' prepared by the Securities Board of Nepal reveals that Bhatta systematically engaged in illegal market manipulation involving shares of various companies.

According to the report, Bhatta, in collusion with stock brokers, purchased and sold shares worth billions without making any payments. It was found that he conducted transactions on credit through Bhrikuti Stock Broking without depositing funds, later settling the accounts after artificially inflating the share prices. The report notes that this action is in violation of Section 96 of the Securities Act, 2063.

During the investigation, it was observed that Bhatta heavily manipulated securities such as Nepal Re-Insurance Company, Nabil Debenture, and NIMB 90. The report confirms that he specifically used family members and close associates to artificially inflate the share price of NRIC.

Bhatta was found to have linked his wife, Ayushma Nepal Bhatta, individuals like Shubhi Agrawal and Sandeep Chachan from Baluwatar, and companies like Infinity Holdings to this network.

Bhatta used different IP addresses from various locations simultaneously to execute share transactions. Technical analysis shows he attempted to control the market by conducting an unusual volume of trades from a single Demat account. It was also discovered that he collaborated with founding shareholders of Himalayan Re-Insurance to systematically drive up prices in the secondary market.

The Securities Board has classified Bhatta's actions as 'price manipulation,' 'false trading,' and 'market influence' under Sections 94, 95, and 96 of the Securities Act. The report concludes that his actions have put general investors at risk and recommends maximum legal action to maintain market integrity.

In its recommendations, the investigation committee has suggested referring Deepak Bhatta, along with associates Sandeep Chachan, Raj Bahadur Shah, Rishi Raj More, and various insurance company directors, to the Central Investigation Bureau (CIB) of the Nepal Police and the Office of the Attorney General for further investigation. Bhatta is currently in police custody in connection with a money laundering investigation.