Employees of the Securities Board of Nepal (SEBON) have demanded the immediate withdrawal of the draft securities bill currently under parliamentary review, calling for a complete overhaul to better reflect the evolving needs of Nepal’s capital market.
At SEBON’s 33rd anniversary event, Employees’ Union President Ajaya Dhungana criticized the proposed amendment for lacking critical reforms and structural clarity. He argued that the bill neither strengthens SEBON’s legal foundation nor introduces essential regulatory mechanisms, instead calling for separate legal frameworks for SEBON as a regulatory body and the capital market it oversees.
“The bill, as it stands, does not empower SEBON to function as an effective regulator,” Dhungana said. He warned that a weak legal structure would erode SEBON’s authority and hinder its ability to ensure proper oversight of the securities market.
Dhungana also took aim at SEBON’s recent operations, claiming the board has operated more as a policy-implementing agency than an independent regulator. He pointed to ongoing policy instability and political interference as major obstacles. One example he cited was SEBON’s controversial payment of Rs 425.6 million to the Kathmandu Valley Development Authority for land acquisition — reportedly made without any formal agreement. He demanded to know who authorized such a move.
In a separate address, Narayan Paudel, president of SEBON’s Independent Employees’ Union, urged Chairman Santosh Narayan Shrestha to publicly respond to allegations linking him to a commission deal during the IPO approval process for a hydropower company. The Anti-Corruption Commission is currently investigating the matter, while the Ministry of Finance has yet to comment.
Paudel said the scandal has created a climate of fear within the institution and called for transparency and accountability from SEBON’s leadership.
