KATHMANDU: Fiscal Nepal recently sat down with Santosh Narayan Shrestha, the newly appointed Chairperson of the Nepal Securities Board (SEBON). Shrestha’s appointment marks a crucial step in addressing regulatory gaps in Nepal’s capital market after 11 months without a leader at the board. In this interview, Shrestha elaborates on his vision, priorities, and strategies for transforming the capital market.
Fiscal Nepal (FN): Congratulations on your appointment. What will be your immediate priorities as SEBON Chairperson?
Santosh Narayan Shrestha (SNS): Thank you. My immediate priority is to address the backlog of public issuance applications, some of which have been pending for a long time and are quite controversial. From day one, I will focus on streamlining these processes. While it may not be feasible to resolve everything instantly, I plan to tackle the issues systematically by prioritizing the most pressing tasks.
FN: SEBON has faced criticism over inefficiencies and allegations of transactional approvals for IPOs. How do you plan to address these issues?
SNS: Such criticisms highlight the need for a more transparent and robust regulatory system. I have extensively prepared for this role and aim to implement reforms that strengthen SEBON’s regulatory framework. Transparency, fairness, and sustainable growth will be the cornerstones of my strategy. I also plan to engage closely with market participants and stakeholders to resolve ongoing issues collaboratively.
FN: The debate over issuing licenses for new stock exchanges has been particularly heated. What is your stance on this?
SNS: I firmly believe that issuing licenses for new stock exchanges is vital for the development of Nepal’s capital market. This will introduce healthy competition and provide investors with more options. However, the licensing process will be guided by the directives of the Nepal government and a thorough assessment of the market’s requirements. It is one of my top priorities, and I aim to ensure that it is handled transparently and efficiently.
FN: SEBON’s regulatory capacity has often been questioned. What changes do you envision to address these concerns?
SNS: Strengthening SEBON’s capacity is indeed essential. This includes upgrading our regulatory tools, building expertise within the organization, and ensuring accountability. There will be no compromises on addressing weaknesses or challenges. My ultimate goal is to establish SEBON as a credible and effective regulator that fosters confidence among investors and other stakeholders.
FN: How do you see the future of Nepal’s capital market under your leadership?
SNS: The future is promising, but it requires collective effort and a strong commitment to reforms. My primary goal is to ensure a fair, transparent, and sustainable development of the capital market. With the support of the government, stakeholders, and market participants, I am confident that we can achieve significant progress in the coming years.
FN: Any message for the stakeholders and investors?
SNS: To all stakeholders and investors, I assure you of my commitment to work in your best interests. The capital market is a vital part of our economy, and I am determined to ensure its growth and stability. Let’s work together to create a market that is inclusive, transparent, and beneficial for all.