Nepal share trading probe: CIB arrests Shekhar Golchha over alleged market irregularities

Police in Nepal arrested businessman Shekhar Golchha on Thursday over alleged share trading irregularities. The Central Investigation Bureau (CIB) linked the case to suspected credit share trading, price manipulation, and unsettled deals. Investigators said these actions may have distorted market prices. The Kathmandu District Court issued an arrest warrant before the detention.

Representative image

CIB officers detained Golchha from a residence in Kathmandu’s Naxal area on the city’s outskirts. CIB spokesperson Shiva Kumar Shrrestha confirmed the arrest happened in the evening. Golchha previously led the Federation of Nepalese Chamber of Commerce and Industries (FNCCI). Golchha also chairs the Golchha Group of Industries and the Himalayan Reinsurance Company.

Securities Board of Nepal report on share trading irregularities

The arrest followed an investigation and supervision report by the Securities Board of Nepal. The report flagged suspected collusion in share trading involving Golchha and other businessmen. Those named included Deepak Bhatta and Sulav Agrawal. Police have already held Bhatta, Agrawal and others in a money laundering case.

Authorities said the alleged scheme involved a stockbroker and several funding sources. The Securities Board of Nepal report said money tied to Golchha and several institutions went through a broker. Investigators believe the broker used it to buy shares in the names of Bhatta and others. The Kathmandu Post reported the broker owes Golchha about NRs 525 million.

Nepal Home Minister Sudan Gurung resignation and share trading links

The developments came a day after Nepal Home Minister Sudan Gurung resigned. Gurung faced allegations about financial conduct while in office. Public criticism grew over alleged business ties and share transactions. Reports linked those dealings to Deepak Bhatta, who Golchha is accused of working with.

Local media also reported details about Gurung’s investments. Gurung reportedly has investments in Star Micro Insurance Co and Liberty Micro Life Insurance. The same reports said controversial share traders Bhatta and the Shanker Group of Industries hold stakes there. Investigators have not released further official details on those claims.

Shekhar Golchha statements on Himalayan Reinsurance Company and share trading

Golchha earlier spoke to Kantipur about the controversy around Himalayan Reinsurance Company. Golchha said: "Such a large transaction had taken place, and funds of various public limited companies had been misused,\" Golchha also said the matter was not placed for discussion at a board meeting. Golchha told Kantipur that Golchha resigned as chairman after learning of alleged illegal purchases.

The same reports recorded Golchha’s denial of personal gain from the transactions. The Kathmandu Post reported that Golchha maintained that Golchha was not the ultimate beneficiary. Investigators said the case concerns suspected actions that could have influenced share prices. Police have not said when Golchha will be produced in court.

With inputs from PTI