SEBON Chairman Appointment Stalled as Capital Market Faces Uncertainty
SEBON chairman appointment remains pending as Cabinet delays decision, raising uncertainty in Nepal’s capital market and concerns over regulatory stability.
The appointment process for the Chairman of the Securities Board of Nepal (SEBON) has remained unresolved for over three weeks, increasing uncertainty in the capital market.
Although a recommendation committee submitted a shortlist of three candidates to the Council of Ministers via the Ministry of Finance on Jestha 8, the government has not yet made a final decision.
Even four consecutive Cabinet meetings held on Jestha 11, 15, 19, and 26 failed to finalize the appointment, according to sources.
SEBON has been operating without a chairman since the resignation of former chief Santosh Narayan Shrestha following an anti-money laundering investigation. Stakeholders say the prolonged vacancy has affected regulatory decisions, securities issuance processes, and overall policy stability.
The selection committee shortlisted Govinda Prasad Bhatt, Mukund Kumar Kshetri, and Vinay Dev Acharya from 47 applicants. However, questions have been raised over the transparency of the selection process.
Criticism intensified after Dr. Nawaraj Adhikari, who reportedly scored highly, was not included in the final three, raising concerns over merit-based selection.
Finance Minister Dr. Swarnim Wagle has already forwarded the recommendation to the Cabinet, but Prime Minister Balendra Shah has reportedly called for further review of complaints and concerns related to the candidates.
Mukund Kumar Kshetri has also come under scrutiny over allegations related to past policy decisions, including IPO pricing rules and stock exchange licensing. However, none of these allegations have been officially verified.
Similarly, concerns have also been raised about Finance Secretary Ghanshyam Upadhyay, although no official findings have been released by relevant authorities.
Sources say the government is in a difficult position, as any decision could trigger further controversy.
Capital market experts warn that the prolonged leadership vacuum in SEBON is affecting market confidence, investor protection, and regulatory stability. They have urged the government to ensure a transparent and merit-based appointment process.
The final decision now rests with the Cabinet, and the capital market is closely watching the government’s move.