Share trader Dipendra Agrawal has been released after posting a bail bond of Rs 4.92 million.
According to Superintendent of Police Niranjan Bhatta, the Central Investigation Bureau (CIB) of Nepal Police released Agrawal after taking the bail amount.
Agrawal was released by the CIB itself under Section 15 of the National Criminal Procedure (Code) Act, 2017.
The section allows an investigating officer to release a person in custody if continued detention is not considered necessary or appropriate.
“If it does not appear necessary or appropriate to keep on detaining a person held in detention in the course of investigation under this act, the investigating authority may, with the consent of the government attorney or by executing a memorandum, accompanied by the reasons therefor, where it is not possible to obtain such consent for the time being, remand such person on bail/bond or guarantee or personal guarantee furnished by any reliable person or on recognizance to appear on appointed days,” Section 15 (1) states.
The CIB had arrested Agrawal on December 19 following a complaint filed by the Securities Board of Nepal (SEBON).
According to SEBON’s preliminary investigation report, Agrawal had purchased shares of Joshi Hydropower Development Company Limited.
He is accused of publishing misleading information by providing deceptive details, in violation of Section 97 (c) of the Securities Act, 2007.
According to Section 97 (c), if a person makes or publishes a false of misleading statement, promise or projection with malafide intention of enticing others to purchase or sell securities, they shall be deemed to have committed an act of misleading.
The CIB alleged that Agrawal earned Rs 4.92 million in illegal profit by selling shares through such malicious practices.
He is also accused of engaging in cross-trading through other trading management system (TMS) users, and carrying out trades among entities associated with his relatives without transfer of actual ownership.
Similarly, it was found that he had artificially increased the share price of Corporate Development Bank.
SEBON’s report further states that Agrawal committed offenses including false trading and price manipulation under Section 94 (a) and (b) and Section 95 of the same act.
Based on the report, police arrested Agrawal.
He had previously also been arrested on fraud charges.
