Share Trader Dipendra Agrawal Arrested for Fraud case in Kathmandu

The Kathmandu Police Office has arrested Dipendra Agrawal, a well-known share trader, on charges of fraud and breach of trust. Agrawal was caught in Tokha, Kathmandu, after investigations revealed his involvement in a Rs 22 crore cheating scandal.

What Happened?

Agrawal was accused of cheating investors and securities brokerage companies through share trading scams. The Nepal Securities Board (NEPSE) had already launched an investigation into his activities and initiated legal action before the police stepped in.

According to police, Agrawal manipulated the share market by buying shares cheaply and using social media to encourage investors to buy those shares, falsely assuring them that the prices would rise. When investors began buying in large numbers, Agrawal sold his shares at a profit.

How Did He Manipulate the Market?

Agrawal was accused of cheating investors and securities brokerage companies through share trading scams. The Nepal Securities Board (NEPSE) had already launched an investigation into his activities and initiated legal action before the police stepped in.

According to police, Agrawal manipulated the share market by buying shares cheaply and using social media to encourage investors to buy those shares, falsely assuring them that the prices would rise. When investors began buying in large numbers, Agrawal sold his shares at a profit.

Meanwhile, the stock he promoted has hit the negative circuit, causing further losses to investors who bought shares based on his recommendations.

Impact on Investors and Market

Many investors, who considered Agrawal an ‘ideal’ trader, were misled by his false promises and suffered financial losses. This case highlights the risks investors face in the stock market and the need for stricter regulations and vigilance.

The police have arrested Agrawal, and further investigations are underway. The Securities Board will continue to monitor the situation closely and take necessary actions to prevent such fraud in the future.