Kathmandu. Some of the people who became the chairman of the Securities Board of Nepal (SEBON) seem to have been in a lot of controversy in the past. The performance of the last 3 presidents Bhishma Raj Dhungana, Ramesh Hamal and Santosh Narayan Shrestha has not been very good.
Dhungana, Hamal and Shrestha have been accused of manipulating the stock market by the chairman of the regulatory body. Shrestha resigned from the post of Securities Board of India (SEBON) after being implicated in the money laundering case along with the share buying scandal of Himalayan Reinsurance. The case is currently under investigation.
The government has formed a three-member recommendation committee under the coordination of Vice-Chairman of the National Planning Commission (NPC) Dr Gunakar Bhatta to appoint a new chairman of the Securities Board of Nepal (SEBON). Finance Secretary Ghanashyam Upadhyay and Bhuwan Dahal are the members of the committee.
According to a source at the Securities Board of Nepal (SEBON), the Ministry of Finance is preparing to expedite the process of appointing the chairman on a fast track. “We have received information that the committee has been asked to directly recommend the profit of 3 eligible candidates to the Ministry of Finance without inviting applications for open competition,” said a source, adding, “After that, the cabinet meeting is discussing to appoint one of the 3 candidates as the chairman of the Securities Board of Nepal on the recommendation of the Ministry of Finance.” ’
According to sources, preparations are underway to expedite the process of appointing the chairman and ask for only educational and work experience certificates from them. “Their job will not be to present and conduct interviews,” the source said.
Securities sources claim that the government will not forward those who were in line to become the chairman of the Securities Board of Nepal earlier. “The government is likely to appoint a qualified and young person who understands the stock market as the chairman of the Securities Board,” the source said.
What is the provision for the appointment of Chairman in the Securities Board?
Clause 7 of the Securities Act, 2063 has set the criteria for the appointment of the chairperson. Sub-section (2) of the Clause states that the Government of Nepal shall, while appointing the chairperson, appoint an appropriate person from among the eminent persons who have at least a Master’s degree and at least seven years of experience in the field of securities market management, capital market development, economic, financial, commerce, management or law for at least seven years.
For the purpose of appointing the chairman pursuant to sub-section (2) of the same Section, there shall be a committee under the coordination of the member looking after the concerned field of the National Planning Commission consisting of the Secretary of the Ministry of Finance and an expert related to the securities sector.
Similarly, the committee referred to in sub-section (4) and sub-section (3) of Section 7 shall recommend the names of at least three persons who are qualified pursuant to this Act and (5) The committee shall determine its own procedures while recommending the name of the chairperson.
Therefore, the committee formed under the coordination of Bhatta can now remove the criteria related to the presentation of action plan and interview while formulating the working procedure. “This will pave the way for the committee to recommend the names of 3 candidates directly on the basis of education and work experience,” the source said.
