Court Declines Interim Order in Pure Energy’s Petition Over Dual ISIN Dispute

The High Court Patan has declined to issue an interim order in a writ petition filed by Pure Energy Limited, which sought a single International Securities Identification Number (ISIN) for both promoter and public shares. The decision keeps in place the current regulatory stance while the court proceeds with a priority hearing on the merits of the case.

A joint bench of Justices Suryanath Prakash Adhikari and Narayan Prasad Suvedi ruled that an interim order was not warranted at this stage, noting that the dispute requires a full adjudication. Although interim relief was denied, the court granted fast-track consideration to the writ, signaling the matter’s broader significance for securities dematerialization practices.

The dispute centers on whether shares of different classes—promoter and public—can be assigned a single ISIN. Citing prevailing securities rules, CDS and Clearing Limited (CDSC) has maintained that distinct share classes must carry separate ISINs, and on that basis has refrained from crediting Pure Energy’s promoter shares to investors’ demat accounts.

Pure Energy argues that a single ISIN would streamline post-listing processes and remove operational bottlenecks. The company approached the court after the impasse prevented its promoter shares from being credited, despite the shares being listed on the exchange.

Regulatory context adds complexity. CDSC prepared an ISIN-related framework under the Securities Dematerialization Operation Directive, 2082, which has been submitted to the Securities Board of Nepal for approval. While discussions have taken place, the board has yet to formally endorse the directive, leaving room for differing interpretations.

Pure Energy had listed a total of 8 million shares on Nepal Stock Exchange on Jestha 12, 2082—6.4 million promoter shares and 1.6 million public shares. The ongoing ISIN dispute has meant that promoter shares remain undeposited in demat accounts, effectively freezing a segment of post-listing activity.

Market participants are watching closely, as the court’s eventual ruling could set an important precedent for how ISINs are assigned across share classes in Nepal. While the interim status quo remains, the priority hearing suggests a definitive legal interpretation may not be far off—one that could shape dematerialization and listing practices going forward.