The Securities Board of Nepal (SEBON) has launched an investigation into possible market manipulation at NRN Infrastructure and Development Limited. Preliminary findings suggest that the company’s chairman, Sitaram Thapaliya, may have been involved in orchestrating share price movements for personal and associates’ gains.
Investigators claim that Thapaliya allegedly used a broker’s trading room as a control center to coordinate trades. Shares were reportedly accumulated at lower prices and sold at a higher peak, targeting ordinary investors for profit. Evidence including audio and video recordings reportedly supports these claims.
Thapaliya’s market experience and influence
Thapaliya, former CEO of Nepal Stock Exchange (NEPSE) from 2013 to 2017, has held multiple key positions in the financial sector. Experts note that his knowledge of share movements and regulatory systems could enable complex market operations.
Investigators say NRN’s share price was gradually increased over months. The company announced a 40 percent bonus share and 100 percent rights issue, after which share prices fell sharply. Officials suspect pre-leaked information was used to manipulate the price.
Potential NEPSE connection
A former NEPSE executive was appointed NRN CEO shortly before the bonus and rights announcement. Authorities are investigating whether insider knowledge contributed to the scheme.
Thapaliya denies wrongdoing
Thapaliya has denied instructing anyone to buy NRN shares or using a broker’s office as a hub. He says visiting broker offices is part of normal business and dismissed the accusations as exaggerated.
SEBON officials stated that anyone found involved in insider trading or market manipulation will face legal consequences. They stressed that such actions harm ordinary investors and undermine market confidence.
