Kathmandu: Despite the recommendation committee submitting its shortlisted names last Friday, Monday’s Cabinet meeting failed to appoint a new chairperson for the Nepal Securities Board.
The recommendation committee had issued a public notice on April 28, inviting applications from qualified candidates for the post. A total of 47 applicants submitted their credentials.
From the initial pool, the committee shortlisted four candidates: former Nepal Rastra Bank executive directors Dr Gopal Bhatta and Mukunda Kshetri, former Securities Board executive director Navaraj Adhikari, and the board’s current executive director Binayadev Acharya. The shortlisted candidates were called for discussions last Friday, after which the committee recommended three names for final selection. Finance Minister Swarnim Wagle also held separate meetings with the recommended candidates at the ministry.
Following the recommendation, the finance minister tabled the proposal at Monday’s Cabinet meeting. However, Prime Minister Balen Shah decided to postpone the appointment, saying the matter required further discussion. He has reportedly formed a special team to examine concerns surrounding the recommended candidates.
The delay comes amid growing controversy over the leadership of the securities regulator in recent years. Sources say the prime minister wanted a deeper review of the backgrounds of those recommended before approving the appointment.
A senior source told Clickmandu that another factor also contributed to the postponement. After the recommendations were made, questions were raised regarding some decisions taken during Mukunda Kshetri’s tenure as a board member of the Securities Board.
Critics have specifically questioned his involvement in decisions related to amendments that allowed companies to issue IPOs at premium prices. According to sources, complaints concerning the matter were also submitted to the recommendation committee.
The controversy deepened after allegations surfaced that the Department of Money Laundering Investigation — which has been probing figures including Dipak Bhatta and Sulav Agrawal — had also looked into issues connected to Kshetri. Sources claim these concerns were formally communicated to the recommendation committee after the recommendations had already been finalized.
Following the complaints, the committee reportedly sent another letter to the finance minister requesting clarification from relevant investigative agencies on whether Kshetri was under investigation or whether any suspicious role had been identified against him. The appointment process has effectively been put on hold pending that review.
“Questions were raised regarding Mukundaji’s role and involvement in certain decisions while serving on the board, so we sent another letter seeking further examination,” a member of the recommendation committee told Clickmandu. “Whether to conduct additional review or whom to appoint ultimately depends on the government.”
With both the prime minister expressing concern and the recommendation committee itself seeking further scrutiny of one of its recommended candidates, Monday’s Cabinet meeting ultimately refrained from appointing a new board chair.
Sources also claim that the prime minister has deployed trusted aides to look into whether any business or vested interest groups may have been lobbying in favour of Dr Gopal Bhatta, who has repeatedly applied for the position in previous rounds as well. The prime minister is also said to be reviewing the political affiliations and backgrounds of all recommended candidates before making a final decision.
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