six months following the priority case's filing over the Securities Board Chairman's appointment

The appointment process is on hold while the case is underway and the Supreme Court's temporary interim ruling, which prohibits the decision to cancel the Securities Board Chairman appointment process, is still in effect.

The Nepal Securities Board will take longer to name a chairman after the organization has operated without a head for seven months. The nomination of the chairman is not expected to happen right away, even though the court extended the payment deadline to January 30, because the issue is still pending before the Supreme Court and the government has not moved forward with the selection procedure.

 Investors are protesting that, despite the daily rise in the stock market, market manipulation has also increased since the Securities Board, which oversees the capital market, is currently operating without a chairperson. In addition, the court set a six-month deadline for the case's settlement. On June 18, Judge Abdul Aziz Muslim's bench issued a temporary injunction prohibiting the implementation of the decision to revoke the Securities Board Chairman's selection procedure.

A combined bench of Justices Sapna Pradhan Malla and Balkrishna Dhakal extended the June 18 short-term interim order on whether or not to do so on June 21. "The written answer should be submitted and given priority for a full hearing after the expiration of the statutory deadline," the order of Judges Malla and Dhakal states, "because it is not appropriate to keep an important position like the Chairman of the Securities Board vacant for a long time." The matter is urgently resolved.

However, even though the order gave priority, the Supreme Court determined the payment six months later. Legal expert Bipin Adhikari claims that fixing the issue after six months—which was given precedence in the short-term interim order—would be a breach of the bench's authority. "In a court, the administration (mechanism) is in charge of carrying out the bench's orders. What matters most, he argued, is the reason those mechanisms are not used.

The official claims that it is unfair to schedule the case's date after six months, even though the bench has given it top priority to complete it as soon as possible. This was not carried out, which was against the court's order. Justice tends to lag behind because in many of these cases the government has mobilized conveniently, he added. "There is an element here that has not accepted the priority." According to the official, an interim order can last for any amount of time and can only be terminated by another order.

The bench's order has not always been carried out by the administration. Some claim that deceit is to blame. The head of the administration is the Chief Justice. The officer stated, "He should use his power to stop such distortion."

Achyut Kuinkel, a spokesman for the Supreme Court, claims that since the cost is decided automatically depending on the merits of the case in court, the administration has no say in the matter. The case's payee system will automatically establish the date, unless it is stated in the order. The officer stated, "Nothing more can be said, even though the petitioner has filed an application stating that it is an urgent matter, it is late, and it should be done quickly. The bench can move it again."

Following the failure of the Chairman Recommendation Committee of the Securities Board, which was established with the assistance of Meen Bahadur Shrestha, the Vice Chairman of the National Planning Commission at the time, to name a chairman, the previous administration terminated the process. Santosh Narayan Shrestha, the presidency candidate, filed a writ in the Supreme Court in June to challenge the procedure. The short-term temporary order issued on June 18 was extended by the combined bench of Supreme Court Justices Sapna Pradhan Malla and Balkrishna Dhakal on June 21. The court last week set January 30 as the case's payment date in accordance with that ruling.

Long-term absence of a chairman of the board has resulted in a lack of oversight and control of the market on the one hand, while preventing corporations from issuing all kinds of securities on the other. The petitioner and candidate for chairman of the board, Shrestha, claimed he had no idea why the case had been scheduled for January 30. Given the gravity of the matter, the court's short-term interim order states that it should be completed as soon as feasible. But after six months, the payee was designated. "I'm shocked," he remarked. "The court order states that it is bad for the regulatory body's leadership to remain vacant for an extended period of time in a sensitive industry like the capital market."

According to Shrestha, the absence of adequate regulation is the reason behind the growth of the capital market, as observed by all. He is now a Joint Secretary after leaving the Ministry of Finance. They do, however, have limitations. As such, it is unable to function efficiently. He stated that the chairman should be appointed by the government without much delay. According to Neeraj Giri, the former executive director of the Securities Board, a prolonged period of vacancy in the chairmanship of the capital market regulating body is detrimental to the market. The primary issue procedure (IPO) and additional issue process (FPO) for securities have been suspended since last year due to the president's absence. This is the reason that the capital raise and business strategies of numerous companies have been impacted, he said.

There is a greater chance of manipulation while the market is rising. The Securities Board needs to monitor and control the market more closely right now. According to Giri, the lack of a chairman will make the market more volatile at a time when the board ought to be taking extra precautions to safeguard investors' money.

The chairman is the board's executive role. As a result, the director—who, in accordance with legal regulations, serves as chairman—does not want to take any chances. "There is a lot of movement in the market right now, but regulation and supervision are ineffective," he continued. "For this reason, the board and NEPSE have been powerless to take any action."

Similar to how all rivers flood during the rainy season, stock market manipulation may occur to boost the share price of businesses with fictitious bad financial positions. Experts argue that the lack of a board chairman is regrettable and that the regulatory body ought to be actively monitoring the market in such a circumstance.

Gopal Bhatt, a capital market specialist and former executive director of Rashtra Bank, claims that the government treated the selection of the chairman of the Nepal Securities Board casually and did not give it priority. It appears like the government wants the market to be troublesome and for there to be only greenery everywhere. The government feels that the market's expansion has made it more popular.' He said, 'The government does not care about measures to reduce risks in the market, building infrastructure, effective regulation and supervision, but the index should increase, there should be a loud noise everywhere, this is what the government looks like.'

The risk-takers belong in the capital market. The market may contract in addition to expanding. An 'Investor Protection Fund' is required by law to reduce potential risks in the case of a market slump. However, he claimed that no government has yet expressed interest in creating the fund. It appears that the stock market is viewed as a joke by all governments. Where did the sudden inflow of cash into the market, which had been declining steadily until 1.5 months ago, come from? What kind of business is seeing a rise in share price? "The government and the regulatory body are not interested in who is involved in increasing the prices," Bhatt stated.

He expressed his sadness at the empty post of board chairman during a period of rapid stock market growth. "In compliance with the legislation, the government has now assigned an employee to assume the role of board chairman. "All this has happened because the government has taken the stock market lightly," Bhatt stated, adding that "none of the employees are experts in that field." The market is expanding, and the chairman is also getting employed. He was free to pursue his own interests rather than relying on outside assistance. Why even try?

Since January 20, the board has been operating without a chairperson. The stock market has risen significantly over the past few weeks. The growing market has a great potential for manipulation. In this scenario, the parliament's finance committee has directed the government to designate a chairman right once because the regulatory body board is currently without a leader. However, the government has not demonstrated any enthusiasm for the chairmanship process. A source in the finance ministry stated, "The government appoints the chairman in a legal and transparent manner."

In compliance with the Securities Act, Ministry of Finance representative Mahesh Baral has taken on the chairmanship of the Securities Board Board of Directors. Baral was sent to the board on July 2 by the Ministry of Finance in her capacity as a representative of the Ministry of Finance following the creation of the new administration. As per the legislation, Baral is presently fulfilling the duties of the chairman. After taking on the role of chairman, Baral has already distributed a merchant banking license, and according to board sources, they are getting ready to give further licenses, such as securities.

It appears that the decision to license a merchant banker has been made. "We also plan to provide more gradually," Baral stated. "In my opinion, the board lacks the institutional strength to effectively oversee and control the market." The National Bank is operating at a very high level. The board doesn't appear to be as capable as other regulating organizations. Consequently, he declared that his top goal is to strengthen Sebon's institutional capabilities.

He acknowledged that it would be more convenient if the ministry's employees were limited to board of directors members, as the chairman holds the executive role on the board, but it would be less efficient if the chairman also served as chairman. This is a new arrangement. For workers like us, being merely board members is simple. Being the chairman of the board is challenging when there is a lot of responsibility in the ministry, he said. There is no turning away from this branch. That's the reason they couldn't provide time on the board, he continued, adding, 'It's simple in my situation. I arrived at Tribhuvan Airport early for lunch, or breakfast. I next proceed to the board. Thus, it appears that action is possible.

The position of president is open following the December 20th expiration of the previous president, Ramesh Kumar Hamal.