KATHMANDU, June 8: Employees of the Securities Board of Nepal (SEBON) have called for the withdrawal of the draft securities bill currently under parliamentary review, urging that a new version be prepared to better reflect the dynamic nature of the capital market.
Speaking at SEBON's 33rd anniversary event, Employees’ Union President Ajaya Dhungana said that the proposed amendment fails to address critical reforms and structural needs of the securities market. He emphasized that the bill does not provide legal clarity or additional regulatory mechanisms, calling for separate laws for the Board and the market.
SEBON faces backlog of IPO applications worth Rs 54.34 billion
"The bill, as it stands, does not empower SEBON to function as an effective regulator," Dhungana said. He warned that weakening the legal framework would only undermine SEBON’s regulatory capacity and questioned how the government could expect effective oversight under such constraints.
Dhungana also criticized SEBON’s recent operations, claiming the board has functioned more as a policy-implementing body than an autonomous regulator, due to unstable policies and external interference.
He highlighted a case involving SEBON's payment of Rs 425.6 million to the Kathmandu Valley Development Authority for land acquisition without any formal agreement, demanding to know who authorized such decisions.
Separately, Narayan Paudel, president of SEBON’s Independent Employees’ Union, urged Chairman Santosh Narayan Shrestha to respond to concerns raised over his alleged involvement in a commission deal during an IPO approval process for a hydropower company. The Anti-Corruption Commission is currently investigating the matter, while the Finance Ministry has remained silent.
Paudel said recent reports linking Shrestha to the scandal have created a climate of fear among employees and stressed the need for transparency from the leadership.
