Kathmandu. The Non-Resident Nepali Association (NRNA) has drawn serious attention to the proposal submitted by CDS and Clearing Limited to the Securities Board of Nepal recently.

Cdsc has said that the proposal to arrange two International Securities Identification Number (ISIN) numbers, including founders and general shares, in the process of dematerializing the shares of the founder group of companies in the process of listing by publicly issuing shares in the securities market, may have a negative impact on Nepal’s capital market, investment environment and plans to bring investment of Non-Resident Nepalis to Nepal. ।

If such a proposal is implemented, there are clear signs that there will be confusion and frustration among the Nepali founding investors living abroad, confusion in share transactions will increase, and in the long run, the stability and transparency of the capital market will be seriously affected.

“Since the inception of the Association, efforts have been made to bring the knowledge, skills and capital of Nepalis living abroad to Nepal and the aim of the Association is to bring small and medium investments to Nepal in a more organized manner,” the statement said. Investment from Non-Resident Nepalis (NRNs) in Nepal is an important source of economic reform and infrastructure development. However, the association believes that the proposed guidelines will have a big impact on investment as non-resident Nepalis from all over the world have to participate in Nepal’s development and create an easy environment to bring their knowledge, skills and capital to Nepal. ’

Non-Resident Nepalis (NRNs) expect stability, transparency and legal clarity while investing in Nepal. However, if the proposed arrangement is implemented, the founding shareholders will have to face difficulties in selling shares, there will be a situation where foreign investment cannot be returned, and an atmosphere of legal confusion is threatening to send a negative message to international investors.

Confidence in the capital market is the basis of Nepal’s long-term prosperity by guaranteeing investment security and maintaining the trust of expatriate and foreign investors. The association has urged the regulatory bodies concerned, especially the Securities Board of Nepal, Ministry of Finance and CDSC, to reconsider the proposal, assess the overall impact through serious discussion, and take a balanced decision.