Agreement Reached Between Securities Board Employees and Ministry of Finance
9th November 2025, Kathmandu
The protracted, 48-day protest by the employees of the Securities Board of Nepal (SEBON) has officially concluded, bringing immediate relief to the nation’s capital market.
SEBON Employees and MOF Agreement
Following a crucial meeting with the Ministry of Finance on Sunday morning, an agreement was finalized to revisit and review the decision related to the cancellation of employee benefits and facilities. This resolution allows SEBON employees to return to their regular duties, ensuring that the oversight functions of the country’s stock market regulator are fully restored, though the commitment to maintain a daily sit-in until a written agreement is received underscores the cautious optimism among the staff.
The Resolution: A Victory for Dialogue and Review
The meeting, held at the Ministry of Finance at approximately 8:30 AM, brought together key representatives from both sides. Representing the Ministry were officials including Division Chief Mahesh Acharya and Uttam Kumar Khatri. SEBON’s negotiating team included representatives from both of its employee unions, emphasizing the unified stance of the staff.
The core of the agreement revolves around the Ministry of Finance’s commitment to review its earlier decision that led to the curtailment of various employee benefits and facilities. This marks a crucial step back from a firm position, signaling the government’s acknowledgment of the employees’ grievances and the disruptive impact the long protest had on the regulatory framework.
Immediate Cessation of Protest: Crucially, the employees have agreed to immediately end their 48-day-long protest and have resumed regular work starting today. This ensures the immediate operational continuity of SEBON, a non-negotiable requirement for the proper functioning of the capital market, including processing of initial public offerings (IPOs), licensing, and regulatory compliance.
Conditional Return: While work has resumed, the employees have adopted a pragmatic approach by deciding to maintain a one-hour daily sit-in until the formal, written agreement detailing the review and resolution of the benefits issue is officially secured. This conditional action ensures that the pressure remains on the Ministry to finalize the terms and provides a mechanism to hold the commitment accountable.
The Impact of the 48-Day Standoff on the Capital Market
The 48-day continuous protest severely hampered the operations of the regulator, leading to significant delays and uncertainty in the Nepalese capital market. SEBON is tasked with supervising stock exchanges, brokerage firms, and clearing houses, alongside approving new public issues (IPOs and FPOs).
During the protest period, critical functions were either slowed down or halted entirely:
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New Issues and IPO Approvals: The process of reviewing and granting approval for new securities issues was significantly delayed, impacting companies looking to raise capital and frustrating investor expectations.
Regulatory Compliance and Oversight: Routine monitoring and enforcement of market regulations were compromised, which can temporarily affect market integrity and investor confidence.
Licensing and Renewals: Processes for new broker licenses, merchant banker renewals, and other intermediary authorizations faced backlogs.
The resolution, therefore, is expected to inject a much-needed sense of relief and optimism into the market. With the regulator fully operational, the pipeline of new issues can be cleared, and regulatory oversight can be restored to full capacity, paving the way for renewed investor activity and market stability.
Lessons in Governance and Labor Relations
This long-running dispute offers valuable insights into labor relations within Nepal’s public sector financial institutions. The protest highlighted the intense reliance of the capital market on the effective functioning of its regulator and the necessity of maintaining harmonious relations between financial sector management and employees.
The final agreement to review the benefit cuts, rather than immediately reversing them, provides the Ministry of Finance with the flexibility to conduct a thorough analysis. This review must consider the financial sustainability of the benefits against the need to adequately compensate and motivate staff in a highly specialized regulatory body like SEBON. Attracting and retaining top talent at the regulator is essential for effective market supervision, especially as the Nepalese capital market grows in size and complexity.
The success of the negotiation confirms the power of sustained, unified action by employee unions in securing attention for their demands. The commitment to continue the sit-in underscores a healthy level of skepticism and a determination to see the review process through to a mutually satisfactory and formally documented conclusion. As SEBON employees officially return to their regular duties, the market anticipates a swift normalization of all regulatory activities and a focus on long-delayed approvals and reforms.
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