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NEPSE GM Singh calls it quits
KATHMANDU, JUL 25 -
Nepal Stock Exchange (NEPSE) General Manager Shankar Man Singh resigned on Sunday amid internal dispute over the appointment of new stockbrokers.
However, Singh, who submitted his resignation at the Finance Ministry, told the Post that he called it a day due to personal reasons. Singh, who was appointed by the then Maoist government served as the NEPSE general manager since Jan. 11, 2008.
NEPSE sources, however, said Singh’s differences with NEPSE Chairman Tanka Paneru was growing as Singh failed to spearhead the selection process of new brokers. According to sources, a meeting of the broker’s selection recommendation committee has not taken place for the past two months due to non-cooperation on part of some senior officials of NEPSE and Nepal Rastra Bank (NRB) who are represented in the committee.
Sources said the meeting of the recommendation committee could not take place as committee members influenced by stockbrokers did not cooperate in the selection process by remaining absent in the committee’s meeting. The meeting was postponed time and again due to lack of adequate number of committee members.
Brokers are hell-bent on stopping the selection of new brokers as they fear they could lose their pie of business with the arrival of the new ones, NEPSE officials said. Despite the many fold rise in the number of shares and turnover, the number of stockbrokers has decreased to 23 from the initial 32.
The process of selecting 34 stockbrokers began three years ago, but the intervention of the Commission for Investigation of Abuse of Authority citing non-transparency halted the process for the next two years until the Supreme Court issued a verdict in favour of the process about eight months ago.
NEPSE has already selected 316 applications out of the 336 applicants.
Singh said the delay in the appointment of new brokers had no relation with his resignation.
Posted on: 2010-07-26 08:22
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