SEBON Staff Unions Decry Ministry Interference, Call for Immediate Directive Reversal

Acknowledging the achievements of the Gen Z movement of Bhadra 23 and 24, 2082, and supporting the nationwide anti-corruption campaign, the Securities Board of Nepal (SEBON) employee unions paid tribute to the martyrs and wished for the speedy recovery of the injured. They noted that with the formation of a capital market task force under the Finance Minister, the sector has been given priority, and SEBON employees remain committed to its development.

Despite being an autonomous regulator under the Securities Act, 2063, SEBON has recently faced challenges due to the Ministry of Finance’s micro-management. On Bhadra 31, 2082, the Board received a directive from the Revenue Secretary ordering the withdrawal of employee facilities granted since its establishment and the recovery of disbursed amounts. The unions have strongly opposed this decision and issued their clarifications as follows:

1. SEBON’s autonomy has been undermined time and again, with government interference raising questions about its efficiency and independence as a regulator.

2. Employee benefits were approved under Section 22 and Section 116 of the Securities Act, 2063, and Rule 77 of the Employee Service Rules, 2068. These facilities, approved by SEBON’s board procedures, are lawful, and the ministry’s decision to revoke them is erroneous.

3. While SEBON still lacks its own physical infrastructure despite repeated requests for support, the ministry instead targeted employee facilities, which unions called unfortunate.

4. The decision to recover benefits already received, including from retired and even deceased employees, was deemed extremely impractical and unfair.

5. As per Section 113 of the Securities Act, the government can issue policy-level directions only on matters such as investor protection and market development. Interference in employee benefits exceeds this scope.

6. The procedures related to employee funds were duly approved by SEBON’s board, which includes a representative from the Ministry of Finance. Hence, claims that these documents are unlawful are baseless.

7. According to Section 167 of SEBON’s Employee Service Rules, only new positions and pay/allowance increments require ministry consent. Welfare and security funds are not subject to such approval, especially since SEBON operates from its own resources, not government budget.

8. Employee welfare and security funds were introduced alongside financial sector reforms in other key institutions like NRB, Nepal Bank, and Rastriya Banijya Bank. Singling out SEBON employees as corrupt is unjustified.

9. The unions condemned the creation of constant fear and psychological pressure among staff, warning that it undermines SEBON’s crucial role in protecting the interests of 7 million investors.

The unions have therefore urged the Ministry of Finance to immediately withdraw what they describe as an unlawful directive and to respect SEBON’s autonomy as guaranteed by the Securities Act. They warned that until the decision is revoked, both employee unions at SEBON will jointly launch phase-wise protest programs.