The appointment of Dr. Gopal Prasad Bhatt as the new Chairman of the Securities Board of Nepal (SEBON) has brought renewed attention to reform, transparency, and governance in Nepal’s capital market.

During an interaction program organized by the Nepal Chamber of Commerce on Ashad 3, Finance Minister Dr. Swarnim Wagle stated that the largest financial crime in Nepal’s history had emerged from the capital market. He also claimed that under the upcoming leadership, companies would no longer need to pay bribes to obtain IPO approvals.

About a week after that statement, the Cabinet appointed former Nepal Rastra Bank Executive Director Dr. Gopal Prasad Bhatt as the Chairman of SEBON. Ten days after his appointment, he officially took the oath of office and secrecy and assumed leadership of the regulatory body.

Although leadership transitions are a normal institutional process, an important question now being raised is whether Dr. Bhatt will be able to complete his tenure with a clean and credible reputation.

Former Governor Dr. Chiranjibi Nepal believes the new chairman faces significant challenges from day one. According to him, previous chairpersons became controversial due to governance weaknesses and regulatory issues, and he advised the new leadership not to repeat those mistakes.

He emphasized that insider trading remains widespread in Nepal and suggested strengthening SEBON’s monitoring capacity by expanding technical expertise, including hiring more Chartered Accountants. At present, Nepal’s stock market capitalization stands at nearly Rs. 50 Kharba with around 270 listed companies, yet the board reportedly has only one Chartered Accountant.

Dr. Nepal, who also previously served as SEBON Chairman, recalled that during his tenure there was not even a single Chartered Accountant in the organization and that he had personally brought one on contract to monitor company activities.

The recent history of SEBON leadership has been marked by controversy. The last three chairpersons entered office with relatively positive reputations but faced criticism and disputes by the time they left.

Santosh Narayan Shrestha, appointed for four years in Mangsir 2081, resigned in Baisakh 2082 before completing his term. His tenure was largely overshadowed by controversy surrounding the licensing process for a proposed new stock exchange. Internal disagreements and complaints filed with anti-corruption authorities drew public attention.

Media reports also questioned possible conflicts of interest linked to his previous professional background. Although court orders were initially issued regarding certain reports, later legal developments reopened public discussion. His tenure was also criticized for delays in IPO approvals and policy decisions.

Earlier, Bhishma Raj Dhungana became controversial after allegations that shares of a company had been purchased in his daughter’s name, raising concerns over insider trading and conflict of interest. Public pressure eventually led to his dismissal.

Ramesh Kumar Hamal, who later completed the remaining term, also faced disputes during his leadership regarding book building, IPO approvals, broker licensing, and stock exchange licensing policies.

Against this backdrop, market participants now expect Dr. Bhatt to bring a more transparent and professional approach. Unlike some previous leaders, he comes from a regulatory and technical background and is considered a specialist in capital market issues, having completed doctoral-level research in the field.

While administering the oath, Finance Minister Dr. Wagle instructed the new chairman to work honestly for investor protection and maintain independence from any form of influence or temptation.

The minister stressed that protecting investors and mobilizing capital effectively are essential to achieving sustainable economic growth. He also directed the chairman to prepare short-term and long-term reform plans covering daily, weekly, monthly, six-month, and annual targets for capital market improvement.

In response, Dr. Bhatt committed to working honestly and using his knowledge, experience, and expertise to promote the development of Nepal’s capital market while protecting investors and supporting the government’s broader economic growth goals.

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