What is Share Market? How to invest in Share Market in Nepal?

Share Market Trends 24 Daily

If you want to invest in the share market in Nepal then there might be some questions that has been already arised in your mind. What is share market? How it works? How people are making money by investing in it? Can I make money too? and so on. If these questions also comes in your mind then don’t worry we are here with this article to answer all of these questions.

After reading this article, you will be well known about the basics of share market, its working process. How you can also make money in stock market. You will be knowing all the steps that are necessary for investing in share market in Nepal.

What is Share Market?

What comes in our mind when we hear the word “Market”? A place where there is buyer is available for buying and seller is available to sell something. Isn’t it? Same meaning apply for the Share Market.

Share Market is the place where buyer is available to buy shares or stocks of any company and seller is available to sell the shares or stocks of any company. Share means ownership of any company. But, in the case of share market buying and selling process, there is a third person between the buyer and seller that helps to succeed the buying or selling process. We called them Brokers. There must be requirement of broker in order to buy and sell stocks. In stock market, only public company shares are bought and sold. If you don’t know what public company means then stay with this article, we will discuss it in this article later.

Types of Share Market

There are two types of Stock Market. That are:

  1. Primary Market
  2. Secondary Market

1. Primary Market:

We can’t buy stocks in primary market. We can only sell the stocks. In Primary Market, business of three types of shares are done. That are:

  1. IPO
  2. FPO
  3. Right Share

IPO (Initial Public Offering):

If any new company registered as public, they offer their shares to the general public which we called IPO (Initial Public Offering). In IPO, company provides 1 share for 100 rupees to public in order to raise money for their business growth. Some companies issue IPO higher than Rs. 100 per share, we recommend you to first analyze the company fundamentals before investing in IPO. This is also called getting listed into the share market. There is very very low risk in Primary Market. In Nepal, most of the people apply for IPO.

To get Notify about all the upcoming IPOs or Shares, Join our Telegram Channel to get IPO Alerts straight to your Notification bar. Join here: Trends 24 Daily – IPO Alerts

FPO (Follow Up Public Offer):

In FPO, If any company that has already issued the IPO before but in need of money then they issue FPO to the public.

Right Share:

If you already have share of any company and in future, if that company issues right share then you will have the first right to apply for that right share. Right Share price will be same as the price when the company previously issued the IPO.

2. Secondary Market:

After newly registered company issue IPO in the public, then after allotment of the shares of that company, their shares are traded in the Secondary Market. Secondary Market is the market place where public company shares are bought and sold by the investors. In Nepal, we consider secondary market as NEPSE (Nepal Stock Exchange). In secondary market, there is broker that complete the transaction of share. Here, the price of the shares varies according to the demand of shares of any particular company. The more the demand, the higher the price will be. The less the demand, the less the demand, the lesser the price will be.

How to invest in Share Market in Nepal?

We have already discussed about all the basics of Stock market. Now we will discuss about how we can get started to invest in share market in Nepal. To start investing, we have to do following things:

1. Open a Bank Account

First of all, to start investing in share market, you have to open a bank account. It is mandatory to open a bank account. Bank account is not only required to apply for IPOs or for buying or selling stocks but it is also required to keep the cash which companies provides you as dividend. You can filter out some good banks visit the nearby branch to open your account. Remember, you must be at least 18 years old to open a major bank account. In case, if you are under 18 then you can take your parents with yourself to bank and can open a minor account. That will also work.

2. Create a Demat Account

Demat is very basic requirement in share market. It must require in order to invest in share market. Demat account the account where all your shares will be stored. Whichever stocks you will purchase or will get alloted in IPOs will store in the demat account.

To open demat account, you can open it from bank as well as from your broker’s office. You have to visit the same bank where you have opened your saving account. We found opening demat from broker is more fast and comfortable than bank. Because, you can open demat account online with broker but in case of banks, you need to visit the bank and fill the demat form and submit it in the reception. In case of minor, you need to take your parents to the bank. Sometimes, brokers takes more time than banks to open demat that can also be depend upon the broker how fast they work.

There are many brokers that are licensed from Securities Board of Nepal (SEBON). You can do some little research before selecting broker. We advice you to choose the broker whose office is nearby your house. We have listed 63 brokers below with their contact numbers and address.

Broker Code Broker Name Landline Address
1 Kumari Securities Pvt. Limited 01-4418036, 01-4423689 Kumari Marg, Dillibazar-30, Kathmandu, Nepal
1_RWS Kumari Securities Pvt. Limited 061-537411, 061-537511 New Road, Pokhara
3 Arun Securities Pvt. Limited 01-4113750 Pingalasthan,Kathmandu 44600
4 Opal Securities Investment Pvt. Limited 01-4420313,01-4420314 Uttardhoka,Kathmandu
5 Market Securities Exchange Company Pvt. Limited 01-4248973, 01-4249558 OM DEV PLAZA COMPLEX, 4TH FLOOR, Kichha Pokhari,Kathmandu
6 Agrawal Securities Pvt. Limited 01-5970106 Radhe Marg, Dillibazaar ,Kathmandu
6_RWS Agrawal Securities Pvt. Limited 021-571667, 021-570857 Main Road, Biratnagar
7 J.F. Securities Company Pvt. Limited 01-4256099, 01-4248202, 01-4212072 Newroad,Kathmandu
8 Ashutosh Brokerage & Securities Pvt. Limited 01-4490232/3 Battisputali Rode (Near SBI Bank),Kathmandu
10 Pragyan Securities Pvt. Limited 01-4413392 Kamaladi, Kathmandu
10_RWS Pragyan Securities Pvt. Limited 021-527283 College Road, Biratnagar
11 Malla & Malla Stock Broking Company Pvt. Limited 01-4432088, 01-4414008 Lalupate Marg, Hattisar, Kathmandu
13 Thrive Brokerage House Pvt. Limited 01-4419051 Naxal,,Kathmandu
13_RWS Thrive Brokerage House Pvt. Limited 061-526877,061-522935 Gairipatan, Pokhara
14 Nepal Stock House Pvt. Limited 01-4265888 Anamnagar,Kathmandu
14_RWS Nepal Stock House Pvt. Limited 061-536258,061-534694 Gairapatan, Pokhara
16 Primo Securities Pvt. Limited 01-4168164 Putalisadak,Kathmandu
17 ABC Securities Pvt. Limited 01-4230787 Indrachowk,Kathmandu
18 Sagarmatha Securities Pvt. Limited 01-4439315 Putalisadak,Kathmandu
19 Nepal Investment & Securities Trading Pvt. Limited 01-4495450 Bhimsengola ,Kathmandu
19_RWS Nepal Investment & Securities Trading Pvt. Limited 021-440127 Main Road, Biratnagar
20 Sipla Securities Pvt. Limited 01-4255782 NewRoad,Kathmandu
21 Midas Stock Broking Company Pvt. Limited 01-4240089 Kamaladi Chowk, Kathmandu
22 Siprabi Securities Pvt. Limited 01-5530701 Kupondol,Lalitpur
22_RWS Siprabi Securities Pvt. Limited 051-523818 Resham Kothi, Birgunj
25 Sweta Securities Pvt. Limited 01-4444791 Putalisadak,Kathmandu
26 Asian Securities Pvt. Limited 01-4524351,4524385 Putalisadak-29, Kathmandu
28 Shree Krishna Securities Limited 01-4224262 Dharmapath, Kathmandu
29 Trishul Securities And Investment Limited 01-4440709 Putalisadak,Kathmandu
29_RWS Trishul Securities And Investment Limited 056-528426 Milan Road, Narayanghat
32 Premier Securites Company Limited 01-4231339 Putalisadak,Kathmandu
32_RWS Premier Securites Company Limited 061-534201 New Road, Pokhara
33 Dakshinkali Investment and Securities Pvt. Ltd. 01-4168640 Kathmandu Plaza, Kathmandu
34 Vision Securities Pvt. Ltd. 01-4438621 Laxmi Plaza, Kathmandu
35 Kohinoor Investment and Securites Pvt. Ltd. 01-4442857 Near Marcopolo Hotel, Kathmandu
36 Secured Securities Ltd. 01-4168172 Opposite to Shanker Dev campus, Kathmandu
37 Swarnalaxmi Securities Pvt. Ltd. 01-4417178 Behind City Center, Kathmandu
38 Dipshikha Dhitopatra Karobar Co. Pvt. Ltd. 01-4102532 Ranabhat Complex, Anamnagar, Kathmandu
39 Sumeru Securities Pvt. Ltd. 01-4444740 Kathmandu
40 Creative Securities Pvt. Ltd. 01-4168205 Putalisadak, Kathmandu
41 Linch Stock Market Ltd. 01-4469367 New Baneshowar, Kathmandu
42 Sani Securities Co. Ltd. 01-401006 Jamal, Kathmandu
43 South Asian Bulls Pvt. Ltd. 01-4284785 Kuleshowar, Kathmandu
44 Dynamic Money Managers Securities Pvt. Ltd. Kamal Pokhari, Kathmandu
45 Imperial Securities Co. Pvt. Ltd. 01-4231004 Anamnagar, Kathmandu
46 Kalika Securities Pvt. Ltd. 01-4430601 Next to Radhakuti Arched, Kathmandu
47 Neev Securities Pvt. Ltd. 01-4168601, 01-4168572 X-Block, 4th Floor, Kathmandu Plaza, Kathmandu
48 Trishakti Securities Public Limited 01-4232132 Putalisadak, Kathmandu
49 Online Securities Pvt. Ltd. 01-4246390,01-4246392 Bagbazar, Kathmandu
50 Crystal Kanchanjungha Securities Pvt. Ltd. 01-4422376,01-4428072 New Plaza, Kathmandu
51 Oxford Securities Pvt. Ltd. 01-4273850,01-4278113 Kalimati, Kathmandu
52 Sundhara Securities Ltd. 01-4212215,01-4263583 Sundhara, Kathmandu
56 Sri Hari Securities Pvt. Ltd. 01-4437562 Kamaladi, Kathmandu
53 Investment Management Nepal Pvt. Ltd. 01-4256589 Tripureshwor,Kathmandu
54 Sewa Securities Pvt. Ltd. 01-4256642 Tripureshwor,Kathmandu
55 Bhrikuti Stock Broking Co. Pvt. Ltd. 01-4223466 Newroad, Kathmandu
57 Arya Tara Investment And Securities Pvt. Ltd. 01-5705596, 5706297 Anamnagar, Kathmandu
58 Naasa Securities Co. Ltd. 01-5970084 Naxal, Kathmandu
59 Deevyaa Securities & Stock House Pvt. Ltd 01-4421488 New Plaza, Putalisadak, Kathmandu
D01 Nagarik Stock Dealer
26_RWS Asian Securities Private Ltd. 071-541385 asainsecurities26@gmail.com
6_RWS1 Agrawal Securities Pvt. Ltd. 041-420420 Kadam chowk-2, Janakpur
8_RWS Ashutosh Brokerage & Securities Pvt. Limited 977-25-586684 Dharan Purav Line Bus Stand, United Insurance Building, Itahari

After your demat account open, you will get a BOID number which will be your account number for doing investing and trading.

3. Get CRN Number Registered from Bank

After opening demat account, the next step is to get CRN Number from your bank. For CRN Number, You just need to fill a very simple form in order to get your CRN Number registered from your bank. This CRN Number is require to link your demat account with your bank account. The CRN Number is needed to apply for the IPOs.

Some banks also register CRN number online. You just need to download the form from bank’s website and take its printout. Fill the form and scan it using any document scanner app and mail it to the bank. (This might not works for all the banks. Ask with your bank customer support.) While applying in offline, you can fill this form and submit in the bank with yourself or with the help of anyone. It is not mandatory that you need to visit the bank for CRN number.

4. Open Meroshare Account

Meroshare is a platform from where we can apply for shares online. We don’t need to visit bank to apply for the IPOs. You can also apply shares by visiting bank but that is very time consuming tired making process. Nowadays, almost every people apply shares using meroshare account.

To open Meroshare account, you have to fill a simple form by visiting your bank. After your Meroshare account created by bank, you will receive a mail on your e-mail (provided in the form) which contains your username and a temporary password which is created by bank. You need to reset that password and set the password according to your own desire.


5. Apply for IPO

After filling a lot of forms, now you can apply for IPO by sitting in your home. When company will issue IPO then keep applying. To get updates regarding upcoming IPOs and Shares, Join our Telegram Channel Trends 24 Daily – IPO Alerts.

Meroshare My ASBA
Meroshare My ASBA

To apply for IPO, open Meroshare in browser or open Meroshare mobile app. You will get interface that is shown in the above image. Enter your DP Name, Username(last eight digit of BOID Number) and Password. After logging into Meroshare account, switch to My ASBA section. Then, move to “Apply for Issue”, there you could find the name of the company which has issued IPO. Click on “Apply” option. It will ask for some details from you. Fill all the details. Apply for at least 10 units. It will also ask for CRN Number. Make sure that you have filled all the details accurately. Then, it will ask for a transaction PIN which you set when you made a meroshare account. Enter that PIN then apply. That’s it. You have successfully applied for the IPO.

6. Open Trading Account

After applying IPO, when you will be allotted shares, you might think to sell it when its share price will reach at higher. So, to sell shares we need to enter in Secondary market. You can also hold the shares as long as you want if you have trust on the company that it will provide me more profit. All the share transactions are done in secondary market. And to enter secondary market, you must have a Trading account to buy or sell stocks. You can trade stocks in the secondary market.

It is mandatory to open trading account through one of the brokers that are licensed by SEBON. We suggest you to open trading account from the broker through with you had open your demat account. To search for the same broker, you must know the name or broker code. Either you can fill the form by visiting their office to open trading account or you can apply online. It will ask for Identity documents like Citizenship, Driving License, PAN card, Birth Certificate(in minor case), etc. Fill all the details and upload all the documents that are require in the form.


So, we have discuss about all the necessary steps that should be taken in order to invest in the share market in Nepal. We hope this guide for share market have cleared all your doubts and made enough for you to enter the Nepali Share Market. Your decision to invest in stocks is wright as it also helps to boost the business which also results in development of economy of our country. If you still have any doubts or questions in your mind then feel free to ask with us in the comment section below. You can also put your your questions in our Forum. We are here to answer all of your questions. Visit our Forum.

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