Santosh Narayan Shrestha appointed chair of SEBN after 11-month delay

November 26, 2024, 09:08:36 AM |

KATHMANDU: The government has appointed Santosh Narayan Shrestha as the Chairperson of the Securities Board of Nepal (SEBON), filling a position that remained vacant for 11 months. The decision was made during a recent Cabinet meeting, following prolonged delays attributed to political interference and procedural hurdles. Shrestha’s appointment comes after a lengthy selection process that began in January 2024 but faced repeated interruptions.

The tenure of the previous Chairperson, Ramesh Hamal, ended in mid-January 2024. Despite forming a recommendation committee led by the Vice Chairperson of the National Planning Commission, the process to select a new chair was marred by delays. Initially, 19 candidates applied for the position, but only four were shortlisted. Eventually, only two candidates, including Shrestha, participated in the final interview. The interviews were further complicated when SEBON Director Dr. Navaraj Adhikari and NEPSE CEO Krishna Bahadur Karki boycotted the process.

The absence of leadership for nearly a year created a regulatory vacuum in Nepal’s capital market. Acting Chair Mahesh Baral, who temporarily held the position, was criticized for inaction and prioritizing foreign trips over his responsibilities. Key regulatory decisions were left unaddressed, which drew criticism from stakeholders and market participants.

Shrestha, who has experience in microfinance, served as a board member of the Nepal Electricity Authority and worked with various private companies. His appointment is expected to bring stability and momentum to SEBON, which plays a critical role in regulating Nepal’s capital markets. The delay in filling this position, despite clear legal provisions, highlighted the influence of political agendas in the selection process.

The appointment comes after the Finance Minister intervened to revive the stalled process. Shrestha’s legal battle to challenge the government’s earlier decision to annul the process also played a pivotal role in expediting the appointment. Stakeholders now hope for renewed focus on transparency, investor confidence, and the development of Nepal’s financial market under Shrestha’s leadership.

Fiscal Nepal |

Tuesday November 26, 2024, 09:08:36 AM |