KATHMANDU: Three out of the five candidates shortlisted for the position of chairman of the Securities Board of Nepal (SEBON) did not participate in the presentation of action plan and interview scheduled for Sunday, indicating political intervention in the appointment process.

Although the recommendation committee formed for the appointment of SEBON chairman shortlisted five of the 19 applicants on April 7, the appointment process was delayed because the finance minister was dissatisfied with the recommended names, a member of the committee told New Business Age.

However, the Ministry of Finance suddenly issued a notice on June 14, calling the five shortlisted candidates to present their business plan and interview on June 16.

Only two out of five candidates showed up for the presentation and interview.

Finance Secretary Madhu Kumar Marasini informed that only Santosh Narayan Shrestha and Muktinath Shrestha attended the interview. Santosh Narayan is a businessman, while Muktinath is an executive director in the Securities Board.

Another Executive Director of SEBON, Dr Navaraj Adhikari; Chief Executive Officer of the Nepal Stock Exchange (NEPSE), Krishna Bahadur Karki; and former Chairman of the Nepal Insurance Authority (then Insurance Board of Nepal) Chiranjeevi Chapagai were not present at the interview, confirmed Marasini. For those who were absent, the Ministry of Finance has issued another notice, stating that the interview will be conducted on Wednesday at 9 am.

The three candidates who were absent on Sunday are considered close to the ruling CPN (Maoist Center). However, sources claimed that these candidates were discouraged from participating in the presentation and interview to delay the appointment process due to differences between KP Sharma Oli, chairman of the other ruling party CPN (UML), and the Maoist leadership.

UML Chairman Oli has been pressuring for the appointment of Santosh Narayan Shrestha, while the Maoist leadership prefers other candidates, leading to the delay in the appointment process, according to sources in the Ministry of Finance and SEBON.

Sources claim that after two months of political negotiations, the Ministry of Finance issued a notice to move the process forward following an agreement to appoint Santosh Narayan Shrestha as the chairman of SEBON. The absence of three candidates in the interview highlighted the dissatisfaction within the Maoist central leadership.

According to the current legal system, at least three candidates must be recommended for the appointment to the post of SEBON chairman. Section 7 of the Securities Act, 2063, mandates that the committee should recommend the names of at least three qualified persons.

Due to this requirement, the interview on Sunday could not proceed, and thus another interview was scheduled for Wednesday. It remains unclear what will happen if the remaining candidates do not participate again, as the law does not address this scenario.

Some have linked this appointment process to the interests of business houses vying for the license of a new stock exchange. Three companies—Himalayan Stock Exchange, National Stock Exchange of Nepal, and Annapurna Stock Exchange Limited—have applied for the new stock exchange license. One eligible company will receive the new stock exchange license.