Santosh Narayan Shrestha Appointed as the New Chairman of SEBON: A New Era for Nepal's Capital Market

After 11 months of being without leadership, the Nepal Securities Board (SEBON) has finally appointed Santosh Narayan Shrestha as its new chairman. This decision, made during a cabinet meeting on Monday, is seen as a significant step toward revitalizing Nepal's capital market, bringing stability and innovation to the regulatory body.

Who is Santosh Narayan Shrestha?

Santosh Narayan Shrestha is a seasoned entrepreneur with extensive investments in hydropower companies and microfinance institutions in Nepal. His vast experience in the financial sector and his active engagement in the stock market make him a suitable choice for this position. Shrestha is known to have strong support from business houses aiming to establish a new stock exchange, which has fueled expectations for his role in driving this initiative.

The Selection Process: Rigorous and Transparent

The chairman position at SEBON had been vacant since January 2023, significantly affecting its operational efficiency. In response, the government formed a recommendation committee led by National Planning Commission Vice Chairman Dr. Shiv Raj Adhikari. The committee shortlisted five candidates, including Santosh Narayan Shrestha, Dr. Navaraj Adhikari, Muktinath Shrestha, Krishna Bahadur Karki, and Chiranjivi Chapagain.

Among the candidates, Shrestha and Muktinath Shrestha underwent interviews and presentations in July. Later, additional interviews were conducted for the remaining candidates, except for Chapagain, who did not participate. Ultimately, the cabinet chose Shrestha as the new chairman of SEBON.

Challenges Faced by SEBON During the Vacancy

The prolonged absence of leadership severely impacted SEBON's ability to make policy decisions and manage day-to-day operations. Although the Ministry of Finance had temporarily assigned a joint secretary to oversee SEBON, this arrangement was insufficient to address critical issues and delayed several key initiatives.

Major Challenges Ahead for Shrestha

Establishing a New Stock Exchange
Nepal currently operates a single stock exchange, NEPSE. There is a pressing need for a competitive market. Himalayan Stock Exchange has been striving to obtain a license for years. Shrestha is expected to resolve this matter decisively.
Improving Market Transparency
SEBON has faced criticism for a lack of transparency in the past. Shrestha must prioritize strengthening governance and rebuilding the board's credibility.
Restoring Investor Confidence
Investor trust in Nepal's stock market has been waning due to prolonged uncertainties. Shrestha will need to implement strategies to attract and retain investor participation.
Digitization and Modernization
With global markets embracing digitization, Nepal's capital market must also integrate advanced technologies to enhance accessibility and efficiency.

Expected Steps for Market Reforms

As the new chairman, Shrestha is likely to take several significant initiatives to reform the market. These include:

Developing New Policies: Creating modern and effective regulations for stock exchanges and securities management.
Leveraging Technology: Introducing digital platforms to improve market transparency and investor access.
Expanding the Capital Market: Encouraging the listing of new companies and broadening market participation.
Education and Awareness Campaigns: Informing and educating investors to make more informed decisions.

Shrestha’s Vision for SEBON

Santosh Narayan Shrestha has expressed his commitment to ensuring transparency and innovation during his tenure. He is expected to focus on long-term reforms that will strengthen Nepal's capital market and support sustainable growth.

The appointment of Santosh Narayan Shrestha marks a new beginning for Nepal's capital market. His leadership is anticipated to bring stability, enhance transparency, and foster trust among investors. As SEBON embarks on this new journey under Shrestha's leadership, the capital market’s future will largely depend on the effectiveness of his initiatives and policies.

We extend our best wishes to Santosh Narayan Shrestha for his tenure as chairman of SEBON and hope he will drive the capital market to greater heights.