Banking Fraud Convict Yogendra Prasad Shrestha Arrested in Kathmandu

Yogendra Prasad Shrestha, former Executive Chairman of Nepal Share Markets and Finance Limited, was apprehended in Kathmandu on Thursday by the Central Investigation Bureau (CIB), ending years of evasion following his conviction in major banking fraud cases. Authorities arrested Shrestha at Sitapaila, Ward No. 5, Nagarjun Municipality, and subsequently presented him before the Kathmandu District Court for execution of his sentence.

The 69-year-old had been evading justice despite a Supreme Court verdict against him. The cases were initially triggered by complaints from Nepal Rastra Bank, which accused Shrestha of financial irregularities and unauthorized banking operations that undermined depositor trust and violated regulatory frameworks during his tenure. Authorities say his actions involved both direct fraud against the institution and harm to individual depositors, underscoring persistent governance challenges in Nepal’s financial sector.

In two separate rulings, the Supreme Court sentenced Shrestha to a combined six years in prison and levied fines totaling NPR 226.74 million. Market analysts note that while the arrest may not have an immediate effect on NEPSE trading, it highlights the critical importance of regulatory oversight and investor protection, signaling stricter enforcement of financial governance in Nepal’s capital markets.