SEBON Staff Demand Resignation of Chairman Santosh Narayan Shrestha

Kathmandu — Employees of the Securities Board of Nepal (SEBON) have demanded the resignation of Chairman Santosh Narayan Shrestha, accusing him of failing to protect staff rights and refusing to pursue legal recourse on issues affecting employee welfare.

In a joint statement released on Friday, SEBON staff unions said that the chairman’s inaction and reluctance to take the dispute to court have deepened the ongoing crisis within the capital market regulator. The employees, who have been protesting for several weeks, allege that the chairman’s failure to defend the board’s autonomy and prior legal decisions has undermined both governance and morale within the institution.

Background: Welfare Fund Cancellation Sparked Unrest

The dispute began after the Ministry of Finance revoked two key regulations — the SEBON Employees Welfare Fund Procedures, 2071 and the Employees Protection Fund (Operation and Management) Procedures, 2075 — which had been legally endorsed by the SEBON Board itself.

Following this decision, employees launched protests, arguing that the move violated the board’s autonomy and created a legal vacuum. The staff unions claim that the ministry’s unilateral action has jeopardized SEBON’s institutional independence, as guaranteed under Section 4 of the Securities Act, 2063, which defines the board as a “self-governing and perpetual successor organization.”

Accusations of Inaction and Leadership Failure

In their statement, employees said:

“The board has failed to take ownership of its own lawful decisions, creating legal ambiguity. Although the judiciary is the ultimate authority to interpret the law, the chairman and the board have refused to approach the court, which is deeply regrettable.”

The unions further warned that Chairman Shrestha would be barred from entering the office until he steps down on “moral grounds.”

Despite employees showing flexibility and a willingness to end the strike if the issue were taken to court, the chairman and board members held only one meeting in 39 days, with only three directors present — a sign of institutional indifference toward resolving the crisis, according to the unions.

Autonomy of the Board Under Threat

The employees have warned that the Ministry of Finance’s secretary-level intervention has effectively overridden SEBON’s independent authority. They argue that both revoked procedures were legally framed and approved by SEBON’s governing board under the Securities Board Employees Service Regulations, 2068, and therefore, the ministry’s move is unconstitutional and contrary to the governing act.

“The Ministry’s action has not only invalidated legitimate board decisions but also set a dangerous precedent that could erode SEBON’s institutional independence,” the statement reads.

Demand for Resignation and Call for Action

The employees’ joint press release concludes that Chairman Shrestha has lost the moral legitimacy to continue in office.

“Since the chairman has failed to protect employee interests and defend the board’s past legal decisions, he must resign immediately. Until then, he will not be allowed to enter the office premises,” the statement declares.

The unions also appealed to the Government of Nepal and the Ministry of Finance to immediately withdraw the secretary-level decision that annulled SEBON’s board-approved procedures, emphasizing that a regulator without autonomy cannot ensure the development of the capital market.

They expressed apologies to investors and market participants for the inconvenience caused by the strike and reaffirmed their commitment to accelerating market reforms and development once the dispute is resolved.