Nepal’s stock market regulator, the Securities Board of Nepal (SEBON), has been facing chaos for nearly two months. Behind this unrest is a silent power struggle involving top government officials, business groups, and a few employee leaders.
At the center of the storm is SEBON’s chairman, Santosh Narayan Shrestha. Some officials and business circles want him out. Their goal appears to be to control SEBON’s decisions and use it for their own financial interests.
According to insiders, the pressure to remove Chairman Shrestha has reached the top level of government. Finance Minister Rameshwor Khanal reportedly wants Shrestha gone. When initial attempts failed, the country’s Chief Secretary, Ek Narayan Aryal, entered the scene.
Sources claim Aryal told SEBON employee union leaders to continue their protests a little longer, saying the “ground is being prepared” to remove the chairman. The message was clear: don’t stop the movement until the plan is ready.
Chief Secretary Aryal has been linked to controversial decisions in the past, including allowing the import of Euro-3 standard vehicles that benefited certain business groups. Now, he is reportedly working to place his own people inside SEBON for faster approvals and easier influence.
SEBON’s employee union and management were close to a deal to end their protests. But suddenly, talks collapsed. Insiders say a powerful group within the finance ministry, led by Undersecretary Uttarkumar Khatri, interfered and pushed the situation to break down.
With no progress, Shrestha is under growing pressure to resign. Yet, despite political pressure and internal opposition, he has refused to quit.
Finance Minister Khanal reportedly asked private energy investors to provide proof of wrongdoing by Shrestha, but so far, nothing concrete has emerged. Some groups accused the chairman of taking commissions during IPO approvals, but none have been able to present solid evidence.
Due to the lack of proof, the finance ministry is said to be searching for any possible reason to take official action against him such as mishandling the employee protest or delaying IPO approvals. If enough justification is found, the cabinet may soon form an investigation panel to suspend him.
Still, the plan may not move quickly. The finance minister himself faces criticism over a separate tax exemption scandal linked to the Dolma Compact Fund. This could weaken his position and delay any action against Shrestha.
Observers say the entire episode shows how deeply politics and power play have entered Nepal’s capital market. What was once meant to protect investors now looks like a battlefield for control.
