KATHMANDU: Employees of the Securities Board of Nepal (SEBON) have launched protests after the Finance Ministry directed them to repay loans and benefits taken from staff welfare funds, with interest.

The controversy stems from a September 16, 2025 directive by Finance Secretary Dinesh Kumar Ghimire, who ordered both current and retired staff to return funds disbursed from the employee welfare and protection schemes. The ministry subsequently sent an official letter to Sebon instructing its implementation, triggering the backlash.

Employees, who have padlocked SEBON offices and staged sit-ins, argue that the secretary-level decision cannot override earlier ministerial-level approvals under which the funds were created. They say many staff members, including retirees, had taken long-term loans from the schemes and cannot immediately repay them.

Finance officials contend that SEBON welfare and protection funds were established in violation of the Government of Nepal (Allocation of Business) Rules 2017 and SEBON own staff service regulations. The ministry has directed that all past disbursements made under “illegal procedures” be recovered as government dues, and that future financial commitments require prior ministry approval.

Employees have accused the ministry of undermining hard-earned benefits and have also pressured Sebon Chair Santosh Narayan Shrestha to resist enforcement. The standoff has disrupted Sebon’s daily operations, raising concerns about regulatory paralysis in Nepal’s capital market.