Amidst controversy, three candidates have been recommended for the position of Chairman of the Securities Board of Nepal (SEBON), which has been vacant for nearly a year.
The recommendation committee for SEBON’s Chairman has forwarded the names of Santosh Shrestha, Mukti Narayan Shrestha, and Navaraj Adhikari, according to Finance Ministry sources. The upcoming meeting of the Council of Ministers would likely appoint one of them, they said.
A number of companies have been waiting for SEBON’s approval for IPO issuance. But, it has been stalled in the absence of the chairman.
The appointment has been delayed amid widespread speculation that two business groups are attempting to influence the process for their vested interests. This has led to the obstruction of the appointment process, as three of five shortlisted candidates did not participate in the presentation and interview process.
However, the path to recommending candidates for the chairman’s position opened after two of the three candidates – Dr. Navaraj Adhikari and Krishna Bahadur Karki – who had remained absent earlier, participated in the presentation and interview on Sunday.
While Adhikari is one of the executive directors of SEBON, Karki is the chief executive officer of the Nepal Stock Exchange (NEPSE).
Bhuvan KC, the press advisor to the Finance Minister, stated that another candidate Chiranjivi Chapagain did not participate in the interview this time either.
Mukti Narayan Shrestha and Santosh Shrestha, who are also on the shortlist, had participated in the presentation and interview from the beginning.
The recommendation committee formed by the Pushpa Kamal Dahal-led government had canceled the appointment process as only two candidates participated in the selection process.
Santosh Shrestha had then approached the Supreme Court, which ordered to not halt the appointment process. Then, the candidates who had missed the interviews were asked to participate.
There have been speculations that two business groups are lobbying to have a chairman of their choice in order to secure approval for a new stock exchange license.
This political influence is believed to have impacted the appointment process. Three companies—Himalayan Stock Exchange, National Stock Exchange of Nepal, and Annapurna Stock Exchange Limited—had applied for the new stock exchange license. One of these companies will be granted the license.
This controversy had highlighted the differences between the CPN-Nepal and CPN-Maoist Centre. The Maoist-aligned candidates had not participated in the interviews.
The position of chairman has been vacant since January 2023. Currently, the leadership role in the board is being carried out by a representative from the Ministry of Finance. After the amendment to the Securities Act last year, the Deputy Secretary from the Ministry of Finance, who represents the board's executive committee, has taken on the role of board chairman.
Since the chairman's position became vacant, the representative from the Ministry of Finance has changed three times. Since July 19, Under Secretary Mahesh Baral has held both the role of board representative and chairman.
