‘डबल आइजिन’ प्रणालीले पुँजी बजार विकृत बनायो : कमलेश अग्रवाल‘Double ISIN’ System Distorts Capital Market: Kamlesh Agrawal

President of the Nepal Chamber of Commerce, Kamlesh Agrawal, has stated that the existing “double ISIN” system has made Nepal’s capital market unreliable and distorted. Speaking on behalf of the Nepal Chamber of Commerce, he emphasized that international practice requires a single ISIN for shares of the same company. At an interaction program organized by CDS and Clearing Limited on the “Securities Dematerialization Operation Directive, 2082,” he said that the policy of issuing separate ISINs for promoter and public shares in the past is the root cause of the current problem.

According to Agrawal, having dual prices for the same company’s shares encourages speculation in the market. It reduces liquidity, divides trading activity, and weakens proper price discovery. He also noted that calculating indices based on different ISINs prevents the Nepal Stock Exchange (NEPSE) index from reflecting the real market situation.

He further stated that the three-year lock-in period on promoter shares has restricted supply in the market. By allowing up to 20 percent holding limits and releasing the remaining shares, supply could be balanced and abnormal price fluctuations reduced. Citing examples from India, he said major investors reinvest profits from successful projects into new industries, and Nepal should create a similar environment.

Agrawal also criticized regulatory bodies such as the Securities Board of Nepal (SEBON), Nepal Stock Exchange, and CDSC for lacking institutional strength, which has contributed to market distortions. Calling the capital market the backbone of economic growth, he stressed the need to make it more transparent, efficient, and performance-based to support Nepal’s sustainable economic development.