A new wave of criticism has surfaced against the Securities Board of Nepal. Three former chairpersons have openly expressed their strong disagreement with how SEBON handled the Reliance Spinning Mills IPO approval. They say the regulator’s recent behavior has damaged both its image and the trust of investors. According to them, the way SEBON is functioning today is far from what a regulator should look like. They believe the market has been left unprotected, and the leadership has failed to act responsibly in several sensitive cases. The former chiefs have urged the government to step in immediately to save the reputation of the regulatory body and protect the confidence of ordinary investors.
Views of experts
The three former chairpersons of SEBON share a similar concern about the way the regulator handled the Reliance IPO. Dr. Rewat Bahadur Karki says the board’s recent decisions show weak governance and poor judgment, making him feel embarrassed to be known as a former chair. He believes SEBON has stopped protecting investors, which should have been its main duty. Former governor Dr. Chiranjibi Nepal adds that the current leadership has become the most controversial in the regulator’s history, sending the wrong message to the market and failing to act transparently. He says monitoring has weakened so much that certain groups are freely misusing the capital market. Former chair Bhisma Dhungana also criticises SEBON for pushing the Reliance IPO forward using outdated financial reports, saying the process ignored investor safety and damaged confidence. All three of them agree that SEBON’s leadership is moving in the wrong direction and the government must act soon to protect both the regulator’s credibility and the trust of ordinary investors.
All three former chairpersons share the same message
The regulator must act responsibly, restore discipline, and protect investors before the situation gets worse.
