July 2, 2019 | Investopaper
All of us are looking for an investment opportunity so that we can make the most out of our hard earned money. Some of us are willing to make higher returns by taking more risk. On the other hand, some are satisfied with getting a decent return at a low level of risk.
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The basic challenge in our Nepalese market is to find the right place to invest in. One of the right places to invest your money for future returns is the stock market. Nepalese stock market facilitates the investors to buy and sell the securities of the companies listed on Nepal stock exchange. Also, you can apply on primary share offerings of a company. You can invest in shares of these companies starting from the small amount of capital or by separating a certain portion of your salary on a monthly basis.
In this article, we will discuss the basic requirements to start trading in the stock market of Nepal. You need to go through the following process before you can apply for a share of a company offered in the primary market and purchase/sell shares in the secondary market of Nepal.
a) Open a Bank Account
At first, you need to visit one of the approved BFIs and open your bank account. You need a citizenship certificate for this purpose along with other necessary documents.
b) Get a Demat Account
To invest in the Nepalese stock market either primary or secondary, demat account is mandatory now. Previously, share investors used to hold their shares in a physical form as a share certificate. Demat account facilitates share investors to hold their shares in an electronic form.
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Like a bank account, the shares you buy and sell in the stock market are debited and credited in your demat account accordingly. You can open a demat account with zero balance of shares in your account. In order to open a demat account, you can either visit approved BFIs, brokers or merchant bankers. To know more about demat, read- Demat Account In Nepal: Everything You Need To Know.
c) C-ASBA Number
Centralized Application Supported by Block Amount (C-ASBA) is an advanced form of ASBA which has allowed investors to apply for primary and right offerings through online. To get the C-ASBA registration number, you need to visit the approved bank where you hold your bank account and fill the C-ASBA form.
You need demat account information to fill the C-ASBA form. Once you get CRN number, you can apply for primary and right shares of the issuing companies. You do not need this number to buy or sell shares in a secondary market.
For full information regarding C-Asba in Nepal, read the article: ASBA & C-ASBA In Nepal: Every Thing You Need To Know
d) Mero Share Account
In order to invest in shares easily and directly from home through online, Mero share is very useful to the investors. To get this service, you just need to pay Rs. 50 per year. You can apply for primary and right offerings easily through the use of Mero share.
Similarly, you can directly transfer your shares to the broker using the EDIS facility. Just go to your bank and fill the form to get this facility. You need to provide an email id to receive your login id and password. To learn about everything you can do with Mero share in details, read- Mero Share Login: Every Thing You Can Do With Mero Share.
e) Broker Account
If you want to buy and sell shares in a secondary market, you need to select one of the 50 brokers available for stock trading. While opening a brokerage account, it will be better if you choose the brokerage firm operating through an office near you.
Open a broker account and then you can place the order to buy or sell the shares of the companies listed on Nepse. You will get a unique code through which your transaction is placed by the broker. To see the list of brokers, Click Here.
So, after following the above five steps you are ready for trading in the primary and secondary shares in the stock market of Nepal.
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