How to invest in Nepali stock market?

By Rup Narayan Dhakal–Pokhara: Before jumping into the Nepali stock market, you have to open a bank account first. To create a bank account, you should visit a bank with some PP size photographs and your citizenship certificate. It takes around an hour to fill up the form that will be provided by the bank.

After creating a bank account, now you will be given another form to create your dematerialize (demat) account. As you know bank account is created to transact the money but a dematerialized account relates to your stocks. Again, you have to provide your photographs and citizenship certificate to create a demat account. This account is based on the Central Depository & Settlement Corporation (CDSC) Limited’s mero share log in system. As you open demat account, you will get a username and login passwords of mero share. At the same time, you will be provided CRN (customer reference number) to apply for initial public offering (IPO) and 16- digit beneficial owner identification (BOID) number. This number relates to your DP (bank) ID and beneficiary (Clint) ID.

Now you can apply for IPO by logging into mero share account. But there needs to be the availability of public offering. You can apply for IPO through applications supported by blocked amount (ASBA) channel that is available inside the mero share account. That system blocks the amount that will be deducted later if you are allotted the IPO. During the IPO application, you should enter CRN and the OTP that is sent in mero share account during the application. You can also apply for the right share and mutual funds through this account. 

But you must complete a few other steps if you want to invest in secondary market. For this, you should open another account in the trade management system (TMS). for this, Nepal Stock Exchange (NEPSE) has provided a certain sub-domain to every broker to make the investors easy. You can find the links of those sub-domains in NEPSE site too. You can choose a broker’s subdomain to create an account to invest in the secondary market online. There are 59 brokers in Nepal and you can choose one of them. You can create an account online now by filling a form there. This form is a kind of KYC. As you fill-up the form, the broker sends you a link to reset your password. Now you can log in to your TMS account and can sell your IPOs via this account.

But to buy stocks, you need to have the e-banking login service of Connect IPS provided by Nepal Clearing House; or the banking log-in-system of Global IME Bank Ltd. You can open a connect IPS account online and can link one of your banks there. But, to take the Global IME e-banking service, you should visit this bank. Now, you can even buy shares from the secondary market if you have the required amount of funds in one of those accounts. In the case of selling, you need to transfer shares via mero share’s EDIS.

The Nepal Stock Exchange (NEPSE) is the only share exchange of Nepal. You can log in its website by clicking Excluding Friday and Saturday, you can see stock live data here during day time. Please note that the Securities Board of Nepal (SEBON) is the governing body of NEPSE.

Published on: September 10, 2020 5:21 pm

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