IPPAN reaches out to Finance Ministry to Finance Committee demanding scrapping of double-age system

लगानी न्यूज

१६ श्रावण २०८२, शुक्रबार १३:५४August 1, 2025

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 dematerialization of the company’s shares.

IPPAN drew TAG_OPEN_div_32 the attention of the Finance Minister, Parliament’s Finance Committee, SEBON and CDSC after the CDS and Clearing Limited (CDSC) moved a proposal to the Securities Board of Nepal (SEBON) stating that the general public and promoters would be kept separate while listing the shares of the companies.

Ippan said that the proposal of the CDSC has created more frustration among the founding investors, private sector, foreign investors, the general public investing in shares, adding 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. TAG_OPEN_div_30 ।

IPPAN has also drawn the attention of IPPAN that such an arrangement will affect the investment of the Nepali private sector and non-resident Nepali community as well as foreign direct investment, as well as great difficulties in collecting domestic capital, investment through non-resident Nepalis and managing foreign investment. TAG_OPEN_div_28 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 as well as serious apprehensions about nepal’s investment environment among foreign investors.

Ippan Chairman Ganesh Karki said that this proposal of the CDSC will not be able to withdraw the investment by selling their shares in view of a law of Nepal and it will have a negative impact on the government’s foreign investment promotion policy, strengthening the capital market and overall economic reform goals. TAG_OPEN_div_26

TAG_OPEN_div_24 He further said, “The stock market is moving now when the shares of the founders and the general public are in the same engine, but keeping separate ijns will shrink the transactions of the capital market and it will also lead to a big decline in the government’s income.” Ippan also said that the dual emission introduced by CDSC will have a big impact on the energy sector companies.

Mohan Kumar Dangi TAG_OPEN_div_22, senior vice-president of IPPAN, said that millions of investors of thousands of companies engaged in energy production will be directly affected by this. He also said that the risk of no investment 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 not only the energy sector, but also the manufacturing industries including tourism, health and infrastructure, which have private sector investment, could not raise capital. TAG_OPEN_div_20 Ippan said that this arrangement will badly affect the companies in the process of dematerializing shares by issuing IPOs, companies that are about to expire the locking period by issuing IPOs and companies in the pipeline of 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 TAG_OPEN_div_18 to IPPAN, such a decision of the 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.