The Supreme Court's temporary directive to continue the presidential selection process is in effect until the matter is heard on January 30.

According to a ruling from the Attorney General's office, the Nepal Securities Board chairman can be chosen while the matter is still before the Supreme Court. Is it possible to move forward with the chairman appointment process while the issue is still pending in court? The Ministry of Finance requested a legal opinion in this regard from the Attorney General's office.

The Attorney General's Office has stated that the process can proceed in accordance with the court's ruling, the sources said in response to the Ministry of Finance.

Attorney General Ramesh Badal said that he believes the current process should be carried out in light of the Supreme Court's judgment to uphold the chairman's appointment in the interim. "It takes time for the court's decision to come, so this government cannot cancel the work done by the chairman recommendation committee formed by the previous government because it is an unbroken successor," said Attorney General Badal, "therefore the process was suspended from that point." In view of that, our office has recommended that the Ministry of Finance proceed with the proceedings. Sources stated that the Ministry of Finance had not made a decision as of Tuesday, despite the Attorney General's Office's recommendation to continue with the previous procedure.

On December 20, Ramesh Kumar Hamal, the Securities Board's previous chairman, announced his resignation. A new chairman was named. Meen Bahadur Shrestha, the vice chairman of the National Planning Commission at the time, oversaw the formation of a three-person committee by the previous government to recommend the chairperson. Nineteen individuals submitted applications, according to the committee's announcement. Five individuals were chosen for assessment and interview: Navraj Adhikari, Krishna Bahadur Karki, Santosh Narayan Shrestha, Muktinath Shrestha, and Chiranjeevi Chapagai. However, three individuals did not show up for the interview, except for Santosh Narayan Shrestha and Muktinath Shrestha. The Securities Act contains a legal requirement that three persons be recommended.

Three individuals will be chosen from the interview and forwarded in accordance with the protocol established by the recommendation committee. But there were only two attendees to the interview. The recommendation committee already asked the Attorney General's office for advice on what to do next. The recommendation committee members, coordinator Shrestha, member and later Finance Secretary Madhukumar Marasini, and expert member Uday Niraula, discussed and debated the Attorney General's Office conclusion. The committee made the decision to halt the procedure because of this. In addition, the former administration established the President Recommendation Committee once more, this time with Vice President Shrestha serving as the coordinator.

One of the five shortlisted candidates, Santosh Narayan Shrestha, petitioned the Supreme Court in the meanwhile, requesting that the procedure not be canceled. 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. 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 set the payment date for the lawsuit on January 30 of last week based on that ruling. Both the administration and the court have come under fire after the government decided not to move forward with the appointment process while the matter was still pending in the Supreme Court, and the court extended the pay date to January 30.

The Securities Board, the capital market's governing authority, is currently without a chairman, which has led investors to claim that, despite the stock market's daily growth, market manipulation has also increased. In addition, the court set a six-month deadline for case payment. On June 21, the joint bench of Justices Pradhan Malla and Dhakal made the following statement regarding the continuation of the order: "Given the significance of this matter, it is evident that it should be resolved as soon as possible. It is not appropriate to keep an important position like the Chairman of the Securities Board vacant for a long time." Give priority for a complete hearing as soon as the deadline passes, and submit in accordance with the guidelines.

However, even though the order gave priority, the Supreme Court determined the payment six months later. Legal experts claim that fixing the issue six months after it was given priority in the short-term interim injunction would be a breach of the bench's authority. They contend that it is unfair to schedule the case hearing for six months after the bench has prioritized moving expeditiously.

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 board chairman, Shrestha, had earlier informed Kantipur that he did not know why the case was 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, "because the court order states that it is bad for the regulatory body's leadership to remain empty for an extended period of time in a sensitive industry like the capital market." 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 experts, the absence of a chairman will exacerbate market volatility at a time when the board ought to be exercising greater caution 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. Therefore, even if there is a lot of movement in the market right now, regulation and oversight are ineffective, according to an expert, which is why the board and NEPSE have been powerless to act.

Since January 21, 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.

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 presently holds the position of 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.