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Political maneuvering intensifies as SEBON chairman selection process stalls

KATHMANDU: The process for selecting the chairman of the Securities Board of Nepal (SEBON) has plunged into uncertainty following the sudden illness of Prof. Dr. Shivraj Adhikari, the chair of the selection committee. Dr. Adhikari was hospitalized due to dengue fever, resulting in the postponement of the interview process.

The Ministry of Finance had scheduled interviews for the three shortlisted candidates for Friday morning at 8 a.m., but the unexpected health issue of the selection committee chair has left the appointment of the SEBON chairman in limbo. Executive Director of SEBON, Dr. Navaraj Adhikari, and Krishna Bahadur Karki, the Chief Executive Officer of the Nepal Stock Exchange, arrived early at the ministry for their interviews but were informed of the halt in proceedings.

Finance Secretary Dr. Ram Prasad Ghimire stated that the interviews could not proceed while Dr. Adhikari remains hospitalized. “The chair of the selection committee has been hospitalized. How can the interviews proceed until he recovers? It now seems unlikely that an appointment will be made before Dashain,” he remarked. Dashain holidays are set to commence on Ashoj 24.

This unforeseen circumstance has disrupted Finance Minister Vishnu Paudel’s plans to appoint a SEBON chairman before the Dashain festival. The minister had aimed to receive recommendations from the selection committee on Friday, with the intention of making a decision in the cabinet meeting scheduled for Monday. However, the hospitalization of the committee chair has complicated these plans.

The ministry had previously summoned Karki, Dr. Adhikari, and former chairman of the Insurance Authority Chiranjeevi Chapagain for interviews as part of the shortlist for the SEBON chairman position. However, Chapagain was also absent on Friday, marking yet another setback for the appointment process.

The selection committee had struggled to recommend names in previous attempts, as the shortlisted candidates failed to attend interviews on two separate occasions. The ongoing absence of Karki, Chapagain, and Dr. Adhikari has further stalled the appointment process, leaving SEBON without a chairman since January 5.

The Economic Committee of the House of Representatives had directed the government to promptly appoint a chairman on July 9. Despite the legal clearance provided by former Attorney General Din Mani Pokharel, the appointment process faced cancellation due to disputes within the selection committee.

In response to the cancellation, candidate Santosh Narayan sought intervention from the Supreme Court, which issued an interim order preventing the cancellation of the appointment process. This matter remains under judicial consideration, with a hearing scheduled for January.

With mounting concerns about the impact of the delay on SEBON’s operations, Finance Minister Paudel is under pressure to expedite the appointment process. There is also significant speculation regarding whether the interests of the Nepali Congress and CPN-UML will align in the selection of the SEBON chair. Former Finance Minister Barshaman Pun has expressed concerns that the failure to accommodate interest groups in the appointment could lead to political ramifications.

As the situation unfolds, the business community, particularly those vying for new stock exchange licenses, is closely monitoring the developments, hoping for an appointment that aligns with their interests.

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