SEBON's New Chairman Santosh Narayan Shrestha Prioritizes New Stock Exchange and Investor Protection

Santosh Narayan Shrestha, the newly appointed chairman of the Nepal Securities Board (SEBON), has vowed to advance Nepal's capital market with a clear focus on introducing a new stock exchange and enhancing investor protection. In his inaugural speech at SEBON headquarters in Satdobato on Wednesday, Shrestha outlined his priorities, signaling a proactive approach to addressing long-standing challenges.

Shrestha emphasized that the groundwork for a new stock exchange is well underway, with substantial progress already made. A government-formed committee has submitted its recommendations, and further steps will be aligned with government directives. His clarity on the necessity of a new exchange highlights its potential to broaden the scope of Nepal's capital market, fostering greater liquidity and inclusivity.

Addressing the delays in Initial Public Offerings (IPOs), Shrestha attributed the holdups to the absence of permanent leadership at SEBON. He assured stakeholders that the IPO process would now proceed in a timely and systematic manner. His intent to normalize IPO issuances reflects a commitment to restoring investor confidence and accelerating access to investment opportunities.

One of the chairman's key priorities is relocating SEBON to its own building. Shrestha disclosed ongoing discussions with the Finance Ministry, which he described as positive. This infrastructural development is expected to strengthen SEBON’s operational efficiency and demonstrate its institutional stability.

Shrestha reiterated that investor protection is his foremost priority. By expanding the role and scope of the capital market, he aims to enhance its contribution to Nepal's economy. Shrestha also acknowledged the pressing need for a collaborative approach involving all stakeholders to modernize the market.

The appointment of Shrestha as SEBON chairman comes at a critical juncture for Nepal's capital market. His vision reflects an understanding of both the potential and the challenges facing the market. The push for a new stock exchange could introduce competition, improve market efficiency, and attract a broader base of investors. Similarly, the focus on investor protection is crucial for maintaining market integrity and trust.

However, these ambitions require robust policy execution and inter-agency coordination. The capital market's success depends on balancing regulatory oversight with innovative growth strategies, especially in IPO issuance and infrastructural development.

In his first official decision, Shrestha approved Everest Bank’s bond issuance, underscoring his resolve to expedite capital market activities. This action sends a strong signal to market participants about SEBON's renewed focus on efficiency and progress.

As Shrestha assumes leadership, his tenure is likely to be defined by how effectively SEBON can tackle systemic bottlenecks and implement transformative changes. If executed well, his initiatives could mark a turning point for Nepal’s capital market, boosting investor confidence and unlocking its untapped potential.