Industrialist Golchha in custody over market manipulation

Businessman Shekhar Golchha, former president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), was arrested on Thursday in connection with alleged offences related to the securities and insurance sectors. His arrest comes even as the Department of Money Laundering Investigation continues a parallel inquiry into the same case. Acting on a complaint lodged by the Securities Board of Nepal (Sebon), the Central Investigation Bureau (CIB) arrested Golchha from the office of Golchha Organisation at Narayanchaur, Naxal, on Thursday afternoon. CIB spokesperson Senior Superintendent of Police Shiva Kumar Shrestha said the bureau had obtained an arrest warrant from the Kathmandu District Court before taking him into custody. Police said Golchha is being investigated under the Securities Act, 2007, for alleged false trading, price manipulation and influencing the securities market—acts prohibited under the law. Golchha is the immediate past chair of Himalayan Reinsurance Company. The department said it is separately probing Golchha on suspicion of laundering assets through questionable transactions in the share market via insurance companies. According to department officials, others under investigation in the case include Sulav Agrawal, vice-chairperson of Shankar Group and chairperson of Jagdamba Holdings; Deepak Bhatta, chairperson of Infinity Holdings; directors of Himalayan Reinsurance; business associates linked to them; and former officials and employ