Sun Nepal Life Insurance CEO Arrested in IPO Share Fraud Case

30th March 2026, Kathmandu

In a major development for the Nepalese financial and insurance sectors, the Central Investigation Bureau (CIB) of Nepal Police has arrested Raj Kumar Aryal, the Chief Executive Officer (CEO) of Sun Nepal Life Insurance Co. Ltd.

Sun Nepal Life Insurance CEO Arrested

The arrest, which took place on March 30, 2026, follows a prolonged investigation into alleged forgery and illicit share acquisition during the company’s Initial Public Offering (IPO).

The Allegations: IPO Forgery and Fraud

The primary focus of the CIB investigation revolves around shares specifically reserved for the employees of Sun Nepal Life. According to authorities, the Sun Nepal Life Insurance CEO was arrested based on evidence suggesting a systematic effort to misappropriate these assets.

Key allegations include:

Falsifying Documents: CEO Aryal is accused of filling out fake application forms and forging the signatures of Nepalese employees to claim shares in their names without their consent.

Mass Share Seizure: It is alleged that Aryal illegally secured approximately 104,650 units of shares that were meant for company staff.

Financial Disparity: While the general public paid a premium price of Rs 239 per share during the IPO, Aryal reportedly acquired these employee-allotted shares at the base rate of Rs 100 per share, leading to an immediate illegal profit of millions of rupees.

Regulatory Response and Investigation

The Securities Board of Nepal (SEBON) had previously flagged these inconsistencies and directed the company to re-allocate the shares to the rightful employees.

However, despite the report being submitted to the CIB months ago, the arrest was only executed recently after the Kathmandu District Court granted permission.

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The police have initiated formal proceedings under Section 100 of the Securities Act, 2007 (2063 BS), which covers fraud and forgery in the capital market.

Impact on Sun Nepal Life Insurance

Sun Nepal Life, established in 2017, has been one of the fastest-growing life insurance firms in Nepal, boasting a network of over 140 branches.

While the company recently celebrated successful financial milestones, including a 20.26% dividend approval for shareholders, this legal crisis marks a significant blow to its corporate governance reputation.

What This Means for Policyholders

Industry experts suggest that while the CEO’s legal troubles are serious, the company’s operational stability and policyholder funds are typically protected by the Nepal Insurance Authority (NIA).

Investors and policyholders are advised to monitor official statements from the company’s board of directors regarding the appointment of an acting CEO to ensure business continuity.

Conclusion

The news that the Sun Nepal Life Insurance CEO was arrested serves as a stark reminder of the increasing scrutiny on corporate transparency in Nepal’s financial markets.

As the CIB continues its investigation into the IPO forgery case, all eyes remain on the Kathmandu District Court for the next phase of legal proceedings.

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