Kathmandu. The Independent Power Producers’ Association of Nepal (IPPAN) has drawn the attention of four agencies to remove the provision of double digit number in the company’s share dematerialization.
IPPAN drew the attention of the Finance Minister, Parliament’s Finance Committee, SEBON and CDSC after cds and clearing limited (CDSC) moved a proposal to the Securities Board of Nepal (SEBON) to make the general public and promoter separate International Securities Identification Number (ISIN) ijin while listing the shares of the companies.
Stating that the cdsc’s proposal has created more confusion among the founding investors, private sector, foreign investors and the general public investing in shares, ippan said that if this proposal is implemented, it will have a long-term impact on nepal’s capital market as well as negatively affect the international world’s attitude towards Nepal. ।
Ippan has also drawn the attention of IPPAN that such an arrangement would affect the investment of the Nepali private sector and non-resident Nepali community as well as foreign direct investment, as well as great difficulty in collecting domestic capital, investment coming through non-resident Nepalis and managing foreign investment.
Ippan said that this has led to the loss of confidence in the investment made by the private sector in various industries and businesses in Nepal and has also raised serious doubts about nepal’s investment environment among foreign investors.
IPPAN President Ganesh Karki said that this proposal of CDSC will not be able to withdraw the investment by selling their shares and it will have a negative impact on the government’s foreign investment promotion policy, strengthening the capital market and overall economic reform goals.
He further said that now the stock market is moving when the shares of the founders and the general public are in the same engine, but keeping separate ijns will lead to a contraction in the transaction of the capital market and it will also lead to a big decline in the income of the government.
Ippan also said that the dual egene introduced by CDSC will have a big impact on the companies in the energy sector.
Ippan Senior Vice President Mohan Kumar Dangi said that millions of investors of thousands of companies engaged in energy production will be directly affected by this campaign to make the country prosperous through energy. He said that the risk of not investing in the projects to be constructed in the coming days has increased and the energy development roadmap of the government to produce 28,500 MW will fail.
IPPAN General Secretary Balram Khatiwada said that the dual engine would not be able to raise capital not only in the energy sector but also in productive industries including tourism, health and infrastructure with private sector investment.
Ippan said that this arrangement will badly affect the companies in the process of dematerializing the shares by issuing IPOs, the companies that are about to expire the locking period by issuing the IPO and the companies in the pipeline of the IPO, which will have a long-term negative impact on the overall capital market and will also have a big impact on Nepal’s economy.
According to IPPAN, such a decision of CDSC will have a huge impact on the capital market by pledging capital worth Rs 87 billion of 58 different industries during the locking period, Rs 53 billion of 47 companies of energy companies and Rs 41 billion of 43 companies in the IPO pipeline.
