Companies Frustrated with CDS Over IPO Listing Delays, Appeal to Securities Board

Several companies that recently issued Initial Public Offerings (IPOs) have raised serious concerns over delays and complications in the listing process caused by CDS and Clearing Limited (CDSC), a subsidiary under the Nepal Stock Exchange (NEPSE). These companies have now formally approached the Securities Board of Nepal (SEBON), seeking intervention.

According to company representatives, CDSC has been halting the listing process by mandating that even founder shares must carry an International Securities Identification Number (ISIN) – a requirement that is reportedly not in line with international norms and has never been enforced in the past for similar companies.

Businesses claim that despite completing all necessary formalities and paying applicable fees, founder shares have yet to be credited to investors’ demat accounts. One such case is Om Megashree Pharmaceuticals, which conducted its IPO in mid-March but only got listed on NEPSE by late April after a 35-day delay. During this period, CDSC reportedly asked NEPSE to assign separate stock codes and symbols for both founder and ordinary shares.

Similar frustrations have been echoed by Emerging Nepal and other firms, who argue that if such dual-listing requirements were valid, they should have applied to earlier companies too. The sudden implementation, they allege, appears arbitrary and poorly justified.

CDSC Managing Director Prabin Pandak responded by saying that the current confusion stems from inconsistent practices in the past. “If we are to follow uniform standards, either all companies should have two stock identifiers, or none should. That decision must come from the regulator,” she stated, emphasizing the need for clear policy guidance from SEBON.

While SEBON had reportedly issued a directive to CDSC over two months ago to resolve the matter, companies say there has been no real progress since then.

This issue has cast uncertainty over new listings and discouraged IPO-bound companies. Market stakeholders now await SEBON’s decisive action to bring clarity and consistency to the listing process.