Kathmandu: A preliminary investigation by Nepal’s securities regulator has uncovered a coordinated market manipulation scheme in which a single individual was found to be operating the online trading systems (TMS) of multiple companies and investors.
The report, titled “Preliminary Supervision Report on Securities Transactions Conducted by Deepak Bhatta, 2026,” reveals that businessman Deepak Bhatta, along with Sulabh Agrawal, Bhirkuti Stock Broking, Himalayan Reinsurance, Himalayan Capserv, and several micro-insurance firms, were all linked through trading systems controlled by one person.
According to the findings, the scheme involved creating an illusion of competition among different entities. In reality, a single operator set prices, generated artificial demand, and executed trades behind the scenes. This coordinated activity misled investors and distorted market behaviour.
The Securities Board concluded that Bhatta and Bhirkuti Stock Broking were the key architects, with prominent individuals including Sulabh Agrawal, Shubhi Agrawal, Raj Bahadur Shah, Rishiraj Mor, Rohit Gupta, and Shekhar Golchha acting as collaborators.
The report highlights serious regulatory violations, including Bhatt’s purchase of shares worth Rs 3.80 billion through Bhirkuti Stock Broking (Broker No. 55) without making any advance payment, which is required under existing rules. Of this amount, Rs 2.89 billion remains unpaid. The regulator noted that Bhatt, in collusion with the broker, manipulated the share price of Nepal Reinsurance by artificially pushing it from Rs 1,461 to Rs 1,686, deceiving investors in the process.
The investigation further shows that funds and accounts of several institutions, including Himalayan Reinsurance, Himalayan Securities Banker, HLI Large Cap Fund, and multiple micro-insurance companies, were used to create fake market demand. Bhatt also allegedly conducted sham bond transactions among companies under his control, such as Himalayan Reinsurance, Infinity Holdings, Nepal Micro Insurance, and Guardian Micro Life Insurance, effectively shifting money between related entities to generate personal gains.
Other individuals, including Shubhi Agrawal, Raj Bahadur Shah, and Rishiraj Mor, were also found to have engaged in similar practices, trading shares worth billions without collateral, receiving shares without full payment, and contributing to price inflation.
The report details how Bhirkuti Stock Broking violated multiple provisions by allowing trades without collecting the mandatory 25 percent advance and by failing to settle transactions within the required T+2 timeframe. These actions point to deliberate collusion aimed at inflating the share price of Nepal Reinsurance, constituting offences under the Securities Act, 2007.
Between July 2025 and March 2026, Bhatt purchased securities worth Rs 3.80 billion and sold shares worth Rs 930 million through the broker, without making any payments. Despite this, the broker continued to facilitate transactions, leaving billions in outstanding dues.
The regulator also uncovered patterns of circular trading in bonds, where Bhatt purchased instruments at lower prices and sold them to companies under his direct or indirect control at higher rates, thereby extracting profits. These transactions involved entities such as Crest Micro Life Insurance and Protective Micro Insurance, both linked to Himalayan Reinsurance.
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