Complaint Filed Alleging Illegal Appointment at CDSC, Raises Governance Concerns in Capital Market Institutions

Kathmandu — A formal complaint has been lodged through the government’s “Hello Sarkar” platform, calling for action against Prabin Pandak, who currently heads CDS and Clearing Limited (CDSC). The complaint alleges that her appointment to the top executive position was made through political influence rather than an open and competitive selection process, raising fresh concerns about governance and transparency within Nepal’s capital market institutions.

Addressed to Prime Minister Balen Shah, the complaint claims that Pandak secured her position by leveraging personal and political connections during the tenure of former Prime Minister KP Sharma Oli. It further alleges that she used influence over officials at CDSC and the Nepal Stock Exchange to obtain and retain the position, bypassing standard recruitment procedures that are expected to ensure merit-based appointments.

The complaint, reportedly filed in the first week of Baisakh, outlines seven key allegations. Among them are claims of misuse of authority, undue pressure on market participants, and actions that have allegedly constrained the smooth functioning of the capital market. While these allegations remain unverified, they reflect growing dissatisfaction among certain stakeholders regarding leadership accountability in critical financial institutions.

Another significant concern raised is the question of regulatory compliance. According to the complaint, Pandak, originally a Level-9 employee at NEPSE, has been serving as the executive head of CDSC for more than a year on deputation. This, the complainant argues, violates internal rules that limit such deputations to a maximum of one year. The continuation of her tenure beyond this period is presented as a potential breach of institutional norms.

The complaint also brings attention to alleged political affiliations. It claims that Pandak publicly promoted events linked to a youth organization aligned with a major political party, including sharing campaign materials on social platforms. Such actions, if substantiated, could raise questions about the neutrality expected from individuals holding key positions in financial market infrastructure entities.

Further allegations suggest that previous complaints filed with the Commission for the Investigation of Abuse of Authority (CIAA) did not lead to formal investigations, with the complainant attributing this to political protection. However, no official confirmation has been made regarding these claims, and authorities have yet to respond publicly to the latest complaint.

The identity of the complainant has not been disclosed, which adds another layer of complexity to the case. While anonymous complaints can highlight potential irregularities, they also require careful verification to ensure credibility and avoid politically motivated narratives.

From a broader perspective, the issue underscores persistent concerns about governance, transparency, and institutional independence in Nepal’s financial ecosystem. CDSC plays a central role in clearing and settlement operations in the stock market, making leadership integrity crucial for maintaining investor confidence.

As of now, no formal investigation has been announced, and the allegations remain subject to verification. However, the development has once again drawn attention to the need for stronger oversight mechanisms, clear appointment procedures, and accountability standards in institutions that underpin Nepal’s capital market.