KATHMANDU: A writ petition has been filed in the Supreme Court demanding the annulment of the recommendation committee's decision to cancel the appointment process for the chairman of the Securities Board of Nepal (SEBON). Santosh Narayan Shrestha, a leading contender for the appointment, filed the writ, claiming that the process should not be canceled.

Shrestha was among five shortlisted candidates for the post of SEBON chairman and attended the interview. The recommendation committee canceled the appointment process after three out of five candidates did not attend the interview and presentation of the professional plan.

According to the Securities Act, 2063, the recommendation committee must recommend the names of at least three people to the Council of Ministers. Since only Shrestha and another candidate, Muktinath Shrestha, gave presentations and interviews, the committee found it challenging to meet this requirement. In the writ petition, Shrestha demanded that the decision to cancel the appointment process be reversed and continued.

"According to the Securities Act, 2063, and the procedure established by the recommendation committee, there is no need to cancel the process," Shrestha told New Business Age.

He believes the decision unfairly affected candidates who had progressed to the final stage. The hearing is scheduled for Tuesday, and Shrestha expects the Supreme Court to rule on the matter. He mentioned that the Office of the Attorney General suggested other options to the recommendation committee to complete the process, prompting him to seek justice from the Supreme Court.

Three candidates considered close to the CPN (Maoist Center) were absent in the presentation and interview amid rumors that Prime Minister Pushpa Kamal Dahal and CPN (UML) Chairman KP Sharma Oli had agreed to appoint Santosh Narayan Shrestha as SEBON chairman. Despite being shortlisted, Dr. Navaraj Adhikari, Krishna Bahadur Karki, and Chiranjeevi Chapagai did not attend the presentation and interview.

Sources say that Oli is particularly pressuring for Shrestha's appointment as SEBON chairman. There are claims that Shrestha's appointment aims to fulfill the interests of a professional group seeking permission for a new stock exchange. However, Shrestha denied this, stating, "I submitted my claim for the post of chairman based on my qualifications and abilities. The process should be carried out based on the Securities Act and procedures."

The process of appointing the SEBON chairman began on January 17, 2024. On that day, the government appointed the vice president of the National Planning Commission to lead the appointment process. A three-member recommendation committee was formed under the coordination of NPC Vice Chair Meen Bahadur Shrestha. Applications for the board chairman were requested from February 28 to March 13, with 19 applicants. The committee shortlisted five qualified candidates from the applications and invited them for an interview and presentation. Despite being given two opportunities, three candidates did not attend the interview and presentation.

Recommendation Committee and Securities Act

The procedure, prepared in accordance with section 5 of the Securities Act, 2063, divides the evaluation weightage for candidates into four categories -- 40 points for the professional action plan, 12 points for educational qualifications, 18 points for the presentation of the professional action plan, and 30 points for the interview, totaling 100 points for evaluation.