Kathmandu, July 30 —
The Solar Power Producers’ Association, Nepal (SOPPAN) has strongly objected to a recent proposal by the Central Depository System and Clearing Ltd. (CDSC) to introduce a separate class of ISIN (International Securities Identification Number) for promoter shares, warning that the move could destabilize Nepal’s investment climate and renewable energy future.
In a press statement issued today, SOPPAN expressed serious concerns that the proposed changes—which would dematerialize promoter shares and restrict their tradability in the secondary market—could deter vital long-term investments in capital-intensive energy and infrastructure projects.
The association highlighted that the regulation comes at a time when Nepal is targeting a 28,500 MW renewable energy goal by 2035, involving major solar and hydropower developments. “Restricting share liquidity for promoters undermines the very capital needed to realize such ambitions,” the statement read.
SOPPAN further warned that the policy may discourage foreign direct investment (FDI) by limiting the ability of foreign investors to repatriate dividends and capital gains, contradicting Nepal’s stated commitment to attracting global financing.
The association also flagged broader concerns about policy inconsistency, noting that regulatory bodies like CDSC and SEBON appear to be out of sync with the government’s development and investment agendas. “Nepal’s fragile investment grade could be further downgraded, risking future capital inflows,” it cautioned.
Calling for coordinated governance, SOPPAN criticized the current policy environment, likening it to a “left hand not knowing what the right hand is doing,” which it said is dismantling investor confidence across the board.
The press release concluded with a strong appeal to the Government of Nepal, Parliament, Ministry of Finance, Nepal Rastra Bank, SEBON, and CDSC to urgently revisit the proposed ISIN provisions. SOPPAN emphasized that a transparent, stable, and investor-friendly regulatory environment is critical to ensuring national development, sustainability, and economic prosperity.