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:
- Primary Market
- 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:
- 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.
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.||firstname.lastname@example.org|
|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.
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.