Nepal’s Capital Market Faces Leadership Vacuum at NEPSE and CDSC

Nepal's capital market is facing a leadership vacuum as both the Nepal Stock Exchange (NEPSE) and CDS and Clearing Limited (CDSC) continue to operate without permanent chief executives. As of July 23 (Shrawan 7), both institutions are being managed by acting officials, prompting concerns over governance and policy implementation. Former NEPSE CEO Chudamani Chapagain resigned on July 6 (Asar 22) following the change in government, and the position has remained vacant for more than two weeks, with Liladhar Subedi serving as acting CEO. Meanwhile, CDSC has been without a managing director for 101 days after Prabin Pandak was recalled by NEPSE on April 24 (Baisakh 11) amid disagreements over the implementation of separate ISIN codes for promoter and ordinary shares. Kanchan Sapkota is currently leading the institution in an acting capacity. Market observers say the absence of permanent leadership at the country's two most critical capital market institutions could delay key policy reforms and strategic decisions, as acting executives are generally limited to handling routine administrative responsibilities. Despite growing calls from investors for stronger market reforms, the government has yet to initiate the appointment process, raising concerns about the priority being given to Nepal's capital market development.