Basic Requirements To Start Trading In The Stock Market Of Nepal

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.

Also Read: Online Share Trading In Nepal: How To Buy & Sell Shares?

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.

Read Related Contents:

7 Things To Watch Before Buying Stocks

5 Golden Rules to be Successful in the Stock Market

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44 thoughts on “Basic Requirements To Start Trading In The Stock Market Of Nepal

  • August 17, 2019 at 1:16 pm
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    बिद्वान मित्र तपाई को कुरा नेपालि भापामै लेखिएको भए म जस्ता धेरैले कुरा बुझ्ने थिए हैन तपाईको भापामा लेख्नु भयो ? बैँक पनि यसै गर्छ बिमा कम्पनि पनि यसै गर्छ ,अँग्रेजि भासाको जाल किन हाल्नु नेपालि भासामै गर्दा के बिग्रन्छ?छ

    Reply
      • August 29, 2021 at 5:09 pm
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        First time I tried to fill up IPO through online but when I click My ASBA >current issue nothing was shown over there . Just it show (no record found) .

        Reply
        • September 16, 2021 at 1:05 am
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          म साउदी मा छु के म यहाँ बाट share mrkt rajsitr गर्नु सक्छु मेरो account Nic maa xa

          Reply
    • May 8, 2021 at 11:28 am
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      Kura ta thikai ho.. tara hajur le ni trick lagaunu ra ye english lekheko lai all translate garnus aafnai fon dekhi.. if u really want…

      Reply
    • July 28, 2021 at 10:02 am
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      Thanks Thanks And thanks for this very very use full information regarding Share Trading procedures its all I have been done.

      thanking you

      Reply
  • April 19, 2020 at 10:35 am
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    Can I invest at the age of 16?

    Reply
    • June 13, 2020 at 2:18 am
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      Yes you can but your account will be taken as minor account(account opened in parential control ) when you’ll get your citizenship then your account will be taken as major account (you will get the sole power of your account)

      Reply
      • January 24, 2021 at 6:32 am
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        Maile as a 17 year old trading account kholna milcha??

        Reply
    • December 8, 2020 at 7:47 am
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      malai tah vaye samma citizenship card vane xa vane apply garna pauxa

      Reply
    • January 17, 2021 at 5:21 pm
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      yeah ! , of course maile tw invest garexu

      Reply
    • January 29, 2021 at 11:21 am
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      Once i apply for TMS application,can i cancel and apply for next?
      Because they are not tesponding any.

      Reply
    • April 15, 2021 at 8:29 pm
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      Why not sure but you need citizenship photo copy to open bank account and mero share I’d

      Reply
  • June 1, 2020 at 2:51 pm
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    Thank u for the info.It was very knowledgeable.

    Reply
    • January 16, 2021 at 8:55 am
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      Really , you explained very clearly..thank you so much.

      Reply
  • July 14, 2020 at 2:58 pm
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    Really like it wanted to learn and invest on it but before then that wants to have know more knowledge about it.Thanks for info.

    Reply
  • August 1, 2020 at 8:00 am
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    Thank you for the information.. Very helpful..i’ve got a question.
    My mero share dp is NCC BANK, but got money in other bank machapuchre bank.. Is there any way i could buy ipo using machapuchre’s account?

    Reply
  • August 17, 2020 at 7:57 am
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    I have 2 dmat accounts.
    Can I open 2 broker account with my dmats ?
    (PS :I know that if i apply for shares from both dmats it will be disqualified)

    Reply
  • August 29, 2020 at 5:11 pm
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    Hello Currently I am living in abroad and i just wanted to ask if i can also participate.

    Reply
    • January 14, 2021 at 6:28 pm
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      Hello sir currently I’m in ahroad .Am I able to invest in share market and can we open demat account without visiting broker

      Reply
  • September 3, 2020 at 6:02 am
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    is it possible to open broker account in online without going at broker? purpose for selling and buying share?

    Reply
  • September 11, 2020 at 4:41 pm
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    can we have 2 brokerage account with a same demat account

    Reply
  • September 24, 2020 at 2:37 am
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    Can the demet acc.,c-ASBA and mero share be filled up from Nepal Bank Limited, if yes then which documents are required ( I want to buy shares for my child and my account is already in NBL)

    Reply
    • September 24, 2020 at 4:04 am
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      Yes you can open Demat account and apply through C-ASBA from Nepal bank. To buy shares for your child, he/she should have own demat and bank account.

      Reply
  • October 12, 2020 at 2:29 am
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    Very informative and easily expressed …now I understood clearly ….thanks very much…

    Reply
    • December 23, 2020 at 9:50 am
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      Hi, i want to invest in share market but i forgot my dmat account number. Could you plz share your ideas how can i get my id.

      Reply
  • December 3, 2020 at 6:50 am
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    What documents are needed to open broker account for minor and for normal account?

    Reply
  • January 20, 2021 at 3:46 am
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    Sir is it compulsory to open trading account to open TMS service? I mean is it compulsory to visit broker office to open trading account?

    Reply
    • January 20, 2021 at 5:21 am
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      Yes, you need to open a trading account for TMS service. You can open a trading account online by submitting the document. No need to visit the broker’s office.

      Reply
  • February 7, 2021 at 2:30 pm
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    HI SIR,

    Can i operate or start trading shares from abroad?

    Reply
    • February 9, 2021 at 10:19 am
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      For the collateral of opening online trading account do we need to deposit the 25% of trade limit in cash or just a cheque???

      Reply
  • February 23, 2021 at 3:42 am
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    How much balance should we have in our bank account to enter the share market

    Reply
  • February 24, 2021 at 2:58 am
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    What is the best thing to do if I never received my username and password? I have visited the bank and they say it has been sent to me. Should I again fill up for mero share??? Need advice.

    Reply
  • April 3, 2021 at 2:22 pm
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    Can i open broker id online and how

    Reply
  • April 28, 2021 at 1:33 pm
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    Didn’t receive id and password in mail after creating broker account online what should I do?

    Reply
  • September 6, 2021 at 9:39 am
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    Hi, Mailey secondary market apply garey 19 number ko broker maa, please let me know how to buy and sell share using nepse stock market? kunai tutorial xa kei training hunxa

    Reply

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