Kathmandu. It has been revealed that businessman Deepak Bhatta has been trading ‘insider in the stock market. An investigation conducted by the Securities Board of Nepal (SEBON) has concluded that Bhatta has artificially inflated the price of shares.

After Bhatta’s arrest, the board had started the investigation as per the letter of the Department of Money Laundering Investigation.

The investigation concluded that Bhatta was trading ‘Insider in connivance with Bhrikuti Stock Broker (Broker Number 55). According to the investigation, business men Sulabh Agrawal, Raj Bahadur Shah, Rishiraj Mor and Shekhar were involved in the scam. 

The investigation has also shown that Bhatt and others were allowed to buy shares worth Rs 3.80 billion on credit in collusion with broker number 55.It is seen that Bhatta and others have bought shares worth about Rs 3.80 billion between July 19, 2002 and March 15, 2002. Out of this, he has sold shares worth Rs 93 crore. However, the investigation report states that Bhatta did not pay any amount to the broker at that time. 

On the other hand, the research has also revealed that an artificial demand has been created in the market in connivance with Bhatt and brokers.According to the report of the Board, Bhatta has forwarded the scheme in coordination with Infinity Holdings, Himalayan Re-Insurance, Himalayan Capserv and Nepal Micro Insurance. In this case, Bhatta has been found to have used some other financial institutions, funds and personal money .

According to the research report of the Board, Bhatta and others increased the price of Nepal Re-Insurance from 1,461 to 1,886 without buying or selling shares .On the other hand,Bhatta purchased the debentures from Himalayan Re-Insurance for Rs 1, for Rs 1,080, according to the investigation.

In the investigation conducted by the Securities Board, it has been claimed that Bhatt and others have committed the offence of (creating confusion in the market, inflating artificial prices, deceiving investors as per Sections 96 and 98 of the Securities Act, 2006.

The Board had formed a probe committee under the leadership of Investigation Officer Dipesh Tamrakar on March 2 as per the letter of the Department of Money Laundering Investigation.The committee has already submitted its report on April 14.