Section 7: Appointment of Chairperson

1) The Government of Nepal shall, subject to sub-section (2), appoint the Chairperson to act as the administrative chief of, and perform the day-to-day business of the Board.

2) In making an appointment to the office of Chairperson pursuant to sub-section (1), the Government of Nepal shall appoint to the office of Chairperson, an appropriate person from amongst the renowned persons who have obtained at least a master’s degree and gained at least seven years of experience in the field of stock exchange management, capital market development, economics, finance, commerce, management or law.

3) There shall be formed a committee under the convenorship of the member of the National Planning Commission responsible for the concerned sector and consisting of the Secretary at the Ministry of Finance and an expert in the field of securities as its members for recommending a name for the purpose of appointment of Chairperson pursuant to sub-section (2), and the appointment of Chairperson shall be made pursuant to this Section on the recommendation of this committee.

4) The committee referred to in Sub-section (3) shall, in recommending a name, recommend the names of at least three persons who have possessed the qualification pursuant to this Act.

5) In recommending a name for the Chairperson pursuant to sub-sections (3) and (4), the committee shall determine its Rules of procedures on its own.

6) The term of office of the Chairperson shall be four years, and he or she may be reappointed for a maximum period of four years.

7) Notwithstanding anything contained elsewhere in this Section, where the Chairperson commits any act or action contrary to the interests of the Board or the development of the capital market and causes any loss and damage to the Board, the Government of Nepal may form an inquiry committee as prescribed and, on the recommendation of such a committee, remove him or her from the office of the Chairperson.

Provided that prior to so removing from his or her office, the Chairperson shall be provided with appropriate opportunity to defend himself or herself.

8) Notwithstanding anything contained elsewhere in this Act, in the event of a vacancy in the office of the Chairman, the member representing the Ministry of Finance in the Board shall act in the capacity of the Chairman of the Board in the event of his removal from office by the Government of Nepal in accordance with sub-section (7) or in the event of his suspension and inability to perform the functions of the Board.