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Government resumes securities board chairman appointment process

KATHMANDU: The government has restarted the process of appointing the Chairman of Nepal’s Securities Board (SEBON) after facing multiple delays. The selection committee has summoned three previously shortlisted candidates who had failed to attend the earlier interview and presentation round.

In a public notice, the recommendation committee announced that the interviews and presentations are scheduled for 8 AM on Ashoj 18 (October 4). The candidates invited include the current CEO of the Nepal Stock Exchange (NEPSE), Krishna Bahadur Karki, former Chairman of the Insurance Board, Chiranjivi Chapagain, and SEBON’s Executive Director, Navaraj Adhikari.

Earlier, despite being shortlisted, these three candidates did not participate in the interview and presentation process, leading the committee to be unable to recommend a name for the position.

Following this delay, the government had initially planned to start a new appointment process. However, Santosh Narayan Shrestha, another shortlisted candidate, filed a petition with the Supreme Court requesting an interim order to stop the new appointment process. On Asar 21 (July 5), a joint bench of Supreme Court Justices Sapana Pradhan Malla and Bal Krishna Dhakal issued an interim order preventing the initiation of a new process.

The court also instructed the case to be prioritized for a full hearing, emphasizing that the important position of SEBON Chairman should not remain vacant for an extended period. However, the hearing has been scheduled for Magh 30 (February 12).

Although the Supreme Court allowed the appointment to proceed through the previous process, the government has now resumed the process accordingly.

How the Appointment Process Got Complicated

The selection committee initially shortlisted five candidates for the position, calling them for interviews and presentations. The candidates included Chiranjivi Chapagain, Navaraj Adhikari, Muktinath Shrestha (SEBON’s Executive Director), Krishna Bahadur Karki, and businessman Santosh Narayan Shrestha.

However, out of the five shortlisted candidates, three—Chapagain, Adhikari, and Karki—failed to appear for the interviews. Sources claim that the Maoist party, which was in power at the time, was responsible for their absence.

Due to the absence of these candidates, the committee was unable to recommend three names, as required by Section 7, Subsection 4 of the Securities Act, which mandates that a minimum of three qualified candidates must be recommended for the position. With only two candidates completing the process, the committee could not proceed.

The committee sought legal advice from the Office of the Attorney General, which confirmed that at least three names were required for recommendation. Based on this advice, the government decided to cancel the appointment process entirely. A new recommendation committee was then formed, retaining the previous members.

After the process was canceled, Santosh Narayan Shrestha approached the Supreme Court, seeking an interim order to halt the new process. Shrestha argued that there was no legal provision to cancel the appointment process. On Asar 18 (July 2), the Supreme Court issued an interim order to prevent the cancellation, and the order was upheld on Asar 21 (July 5).

Although the case was prioritized for a hearing, the next session has been scheduled for Magh 30, leaving the process in limbo.

Government Resumes Previous Process

With the Supreme Court’s decision to allow the appointment to proceed through the previous process, the government has now resumed efforts to fill the SEBON chairman position. It remains to be seen how the interviews and presentations will progress this time and if the long-vacant position will finally be filled.

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