Kathmandu. The Securities Board of Nepal (SEBON), the regulator of the stock market, has been without its chairman for long. <\/p>\n
After the formation of a single government of the Rastriya Swatantra Party (RSP), Santosh Narayan Shrestha resigned from the post on April 18. Although the recommendation committee formed by the government to appoint the chairman has already finalized the shortlisted candidates, Sebon is yet to find a new president. <\/p>\n
With Sebon without a leader for a long time, there is a lot of concern among investors, brokers, listed companies and other stakeholders. With the formation of the new government, the capital market also expected a person with a vision and a reform-oriented working style to become the chairman of Sebon. However, as this hope has turned into disappointment, questions have been raised about the government’s attitude. <\/p>\n
Sebon is not just an ordinary government office but the guardian of a market that is worth billions of dollars every day. It guides the market and approves and approves billions of IPOs, right shares, bonds and mutual funds to raise capital for companies. The leadership of this body, which is responsible for regulating the overall capital market, is directly linked to credibility, transparency and the future. <\/p>\n
Following the resignation of Dr Santosh Narayan, the government had formed a recommendation committee under the coordination of NPC Vice-Chairman Dr Gunakar Bhatta. However, Bhatta resigned from the post of coordinator after his own relative also entered the race for the post of Sebon president. A committee led by Commission member Dr Sanjay Acharya had shortlisted the names of four out of 47 applicants for discussion. The names of the remaining applicants have not been revealed yet. <\/p>\n
The shortlist includes former executive director of Sebon Ltd Dr Nawaraj Adhikari and incumbent executive director Binay Dev Acharya and former executive directors of Nepal Rastra Bank Mukunda Kumar Chhetri and Dr Gopal Prasad Bhatta. However, the Council of Ministers has not been able to take a decision even after a long time since the process of appointing the chairman has reached the final stage. <\/p>\n
However, questions are being raised from various angles regarding the names in the shortlist. There is also talk in the market that the selection process can be resumed due to conflicts of interest. <\/p>\n
Disorder Chang, Corrective Ability Needed<\/strong><\/span><\/p>\n }<\/p>\n In recent times, the capital market has seen widespread irregularities. The new leadership faces many challenges in restoring these anomalies. <\/p>\n Along with the digital transformation of the capital market, insider control, protection of investor interests, bringing NRNs into the capital market and restructuring of NEPSE and CDSC are some of the issues that need to be taken for the same. At the same time, it is imperative to make the public issue of ordinary shares more transparent and effective. <\/p>\n The new leadership needs a strong vision, courage, policy clarity and the ability to implement these issues effectively and bring the capital market on track. For now, Sebon’s leadership selection is being linked to the future of the capital markets as a whole, rather than to the general hiring process. <\/p>\n Everyone’s attention to the Sebon president<\/strong><\/span><\/p>\n The Sabon presidency is considered to be one of the most influential responsibilities in the financial sector. Because leadership has the authority to approve billions of financial instruments, regulatory decision-making role, and policy effectiveness. This is why this position is so powerful that it is of interest to various power centers. <\/p>\n Public expectations of the Sebon leadership are high, especially among the general public. They have demanded that the appointment process should be transparent, credible and free from disputes. <\/p>\n Waiting for the market, government test<\/strong><\/span><\/p>\n }<\/p>\n However, the RSP government had indicated that it would appoint a chairman on the fast track in Sebon. However, even though the process is almost complete, Sebon has not found a new president. If the government can take a decision at the earliest and elect a qualified and capable person to lead the company, it will send a positive message to the capital market. Therefore, it has become the subject of the government’s examination. However, if the process is prolonged, it is equally likely that the government’s decision-making ability and attitude towards the capital market will be questioned. <\/p>\n With Sebon without a leader for a long time, there is a growing risk that policy decisions and corrective measures will be affected by the approval of the public release. Such a trend can demoralize investors and shake market confidence. Therefore, the investors have only one demand: “We want results, not speeches, decisions, and commitments.” \u2019<\/p>\n Right now, everyone’s attention seems to be focused on every cabinet meeting. “Will the government make the appointment of the Sebon chairman an example of the beginning of a new political culture or will it continue the same old tradition?”<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. The Securities Board of Nepal (SEBON), the regulator of the stock market, has been without its chairman for long. After the formation of a single government of the Rastriya Swatantra Party (RSP), Santosh Narayan Shrestha resigned from the post on April 18. Although the recommendation committee formed by the government to appoint the chairman […]<\/p>\n","protected":false},"author":16,"featured_media":220592,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45180],"tags":[],"class_list":["post-302482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-stockmarket-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=302482"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302482\/revisions"}],"predecessor-version":[{"id":302483,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302482\/revisions\/302483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/220592"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=302482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=302482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=302482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}