The Securities Board of Nepal (SEBON) is preparing to implement a new rule that will assign two different ISIN numbers one for promoter shares and another for public shares. The decision follows a recommendation from CDS and Clearing Limited (CDSC) and is expected to take effect within this month.
Why the change is coming
For years, promoters and public shareholders in many companies have shared the same ISIN. CDSC argued this creates complications in trading and record-keeping, especially during the lock-in period for promoter shares. SEBON has now agreed that separate ISINs will make things clearer and fairer for all sides.
Support and opposition
The Ministry of Finance has already given a green signal to the plan. Public investors have generally supported the change, saying it will bring more transparency. However, some promoter groups especially in the hydropower sector — are not happy, arguing it could complicate their holdings.
How it will work
Under the new rule, all companies going public must keep separate ISINs for promoters and public shareholders during the lock-in period. Once that period ends, companies can merge them into a single ISIN with SEBON’s approval. They must also issue public notices twice before making the change.
Existing companies with a single ISIN and an ongoing lock-in period will also be required to separate them after the rule takes effect.
Final steps before launch
SEBON is expected to finalise the details soon, including a simplified process to convert promoter shares to ordinary shares once the lock-in period is over. A board meeting has been called to approve the plan, making this one of the most significant market changes in recent years.
