Kathmandu. The Independent Power Producers’ Association of Nepal (IPPAN) has demanded that the promoter shares worth more than Rs 22 billion of the companies that have been issuing initial public offering (IPO) since January 2080 be listed in the NEPSE Securities and Exchange Board of Nepal (NEPSE).

According to the guidelines on the issue of securities, the promoter and ordinary shares of the company have to be listed in NEPSE at the same time after the issuance of the IPO, but CDS and Clearing Limited (CDSC) has demanded that the promoter shares be illegally blocked for the past 14 months by dematerializing only the ordinary shares.

IPPAN on Wednesday wrote a letter to the CDSC urging it to dematerialize the promoter shares of all the energy companies and list them in the NEPSE. The Nepal Stock Exchange (NEPSE) has not listed the promoter shares of more than Rs 22.12 billion of 22 energy companies, including three solar power companies, after the CDSC made it mandatory to have separate international securities identification number for promoter shares and ordinary shares.

Investors of nearly two dozen power generation companies have been affected due to the illegal stubbornness of the CDSC. Energy entrepreneurs say that the investors of these companies have lost faith in the government. They also complain that it has created a situation for investors to hesitate to invest in more projects.

According to the current law, power generation companies are not allowed to sell promoter shares for 3 years. After 3 years, the promoter can sell the shares only if the company repays the bank’s debt. Despite this, the entrepreneurs say that it is an injustice to the investors that the CDSC has not listed the shares illegally by issuing the issue of double identification.

The Non-Resident Nepali Association (NRNA) had urged the government not to implement this provision after the CDSC stance that the promoter shares would be listed only by maintaining dual engines. The NRNA had also warned that if such provision was forcefully implemented, more investment would not come from Non-Resident Nepalese (NRNs). The NRNA had drawn the attention of the CDSC to the fact that the double engine would mortgage the property of the investors and it could spoil the investment environment of Nepal in the coming days.

According to IPPAN, in the fiscal year 2081/82, 352,26,552 units of promoter shares worth Rs 3.52 billion of eight energy companies are yet to be listed in NEPSE.

Similarly, 186 million 14 thousand 726 units of promoter shares worth Rs 18.60 billion of 14 companies are yet to be listed in NEPSE in the fiscal year 2082/83. A total of 22,12,71,278 units of promoter shares worth Rs 22.12 billion are yet to be listed in NEPSE.