After lockdown in Nepal, the number of people investing in the Nepali share market known as NEPSE has been rapidly increased. Investing in the primary market i.e. IPO is profitable. So, there is a huge flow of people in Banks and Capitals to open a bank account, open a Demat Account, and register a CRN Number. In this post, you will be crystal clear on How to invest in Nepal share market.
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How to invest in Nepal Share Market (Primary)?
In Nepal, there is a trend of offering IPO for Rs.100 per Kitta or Unit. There are above 30 Lakh DEMAT holders in Nepal. Must companies are opening Initial Public Offering below 1,00,00,000 Kitta. Hence, if you are lucky enough you will get 10 kitta IPO of offering company. Only a few companies like NIFRA open large units of IPO for general people.
To fill IPO or invest in Primary Share Market in Nepal you must have your bank account, DEMAT account, and CRN Number or CASBA registered. To invest in Primary Share Market in Nepal, follow these steps:
Step 1 (Opening Bank Account)
Open your Saving account in any Bank of Nepal. You can open your bank account online also. But to get your Debit/ATM card, and cheque, you must visit the Bank.
Point to be noted: Some bank charges Rs. 50 for each time you applied for IPO. So, choose the bank having no CASBA charge or less. I have opened my Bank Account at NIC Asia Bank since it doesn’t charge me while I apply for IPO. To open an account from NIC Asia bank, click here, fill the form and submit it. You will get your account number in your mail ID.
Documents required to open your Bank Account in Nepal:
- Citizenship or Valid government ID card Original and Photocopy(Birth Certificate for Children’s)
- Recent Photo (To open bank account physically carry at least 5 recent photos)
- Minimum Fixed Deposit Amount (If you are not willing to open Zero balance account)
Step 2 (Opening DEMAT and Meroshare Account):
After you got your Bank Account Number, you can apply for a DEMAT account from the same bank or through any capital. You can also open your Demat account from here (Naasa Securities) for all banks. You will get both Demat Account and Mero share account from Naasa Securities.
If you have opened your bank account in NIC Asia Bank, you can click here to apply for DEMAT. You must visit bank with your valid government ientity card to verify. After visiting NIC Asia bank, You can fill this form and submit after getting DEMAT number for registering CRN and getting Meroshare account.
Documents required to open DEMAT Account in Nepal:
- Your Bank Account Number
- Citizenship or Valid government ID card
- Recent Photo
- Selfie with your photo (for self-verification to opening DEMAT online from NAASA)
Step 3 (Applying for CRN)
After getting your DEMAT number and Mero share account you should apply for CRN Number. You can apply for a CRN number by physically visiting your Bank where you have opened your bank account or online. It depends upon your bank. Remember, you should apply for CRN from where you have opened your bank account.
If you have applied from NIC Asia Bank for a DEMAT account, You can apply for a meroshare account and CRN Number from here. To get CRN online from NIC Asia Bank, you must have opened your DEMAT account from NIC Asia.
Step 4 (Applying for IPO)
After you apply for the Mero share account, you will get mail including your login ID and Password. You can reset the Mero share password yourself. Now, you can apply for the current IPO. To apply for IPO:
- Open Meroshare App on Android or open https://meroshare.cdsc.com.np/ in any browser.
- Choose your DP(Depository Participants) where you have opened your DEMAT account.
- Enter your username that you got in your mail.
- Enter your password and click enter.
- Now, Click on My Asba.
- Click on current Issue.
- If there is any IPO currently open, you will can apply for IPO.
How to invest in Nepal Share Market (Secondary)?
You can sell IPO that you got in the Secondary market. To sell any stock you must have your TMS account. You can buy stock in any quantity from the Secondary market. To invest in a Secondary Market in Nepal i.e. NEPSE, you must have a TMS account from the broker. There are tons of brokers in NEPSE. You can choose the broker near you and submit the form.
Few Points That You Must Know About Secondary Share Market in Nepal (NEPSE)
- You must load collateral amount to buy stocks from NEPSE. Most of the brokers are using the 1:1 rule. That means, if you want to buy stocks worth 10 Lakh rupees, you must deposit 10 Lakh rupees as collateral to your broker through TMS before placing order.
- Loading of collateral is easy. You can use ConnectIPS to load collateral. If you don’t have to connect your ips account you can create one from here.
- If you don’t do the payment of stocks that you bought through NEPSE within T+2 days, you may be fined. So, it’s better to clear your due within T+2 days.
- Don’t expect to get payment of stocks from a broker in time. You can call or mail to your broker if you don’t get your payment in 3 to 4 days.
To open TMS account in Nepal, follow these steps:
- Find the best Broker For You. I suggest Naasa Securities.
- Open form Url of any broker that you like from the given list.
- To open TMS/Trading account from NAASA Securities/58 no. Broker click here.
- Enter your details, Bank Account Number, and DEMAT number.
- Upload your PP size photo, Signature, Valid Government ID card, and Selfie with a Valid Government ID Card.
- Submit the form and wait for 1-2 days to get a response from the broker.
- If you don’t get any response from the broker, contact the broker through mail or telephone.
- You will get mail after 1-2 days containing the TMS password reset link.
- Reset your password.
After opening a TMS account, you can buy or sell stocks online in Nepal.
How to buy stocks in the Share Market in Nepal?
To buy shares online in Nepal, open the TMS URL of your broker. For example, if my broker is Number 58, I should open tms58.nepsetms.com.np. Replace 58 with your broker number. After opening your TMS Url follow these steps:
- Login to tms account and Load collateral.
- Click on Order Management, and then on Buy Now.
- Choose the stock name that you want to buy.
- Enter the price within the price range, and the number of stocks that you want to buy.
- Press on Buy Now to place a buy order.
- If your Buy price matches with the Sell price, your order will be complete.
- You can also edit your buy order.
- If you have loaded collateral, you can mail your broker to cut the amount from collateral or you can provide payment through Connect IPS.
How to Load Collateral in TMS?
- Enter your Client ID, Password, Captcha and click on login.
- Click on Fund Management, Collateral, and then on Load Collateral.
- Choose Connect IPS on Bank, Enter your amount and type anything on remarks.
- Now click on submit and confirmation box will popup.
- Select Yes, and it will redirect you to connect IPS login page.
- Enter your username, type captcha and click continue.
- After that, enter your password and press signin.
- Select your debit account and press submit.
- You will get OTP on your mobile number. Enter that OTP and press submit.
- After successfull transaction you will be redirected to Client Fund Transfer History page.
- You can see transactions list on this page.
- In the table find the transaction amount that you just transacted and in the right end of table, you can find action there. Click on the verification button n Action column.
Which company is best for share market in Nepal? – Stocks of Banks are known to be the best.
If you want to earn money from the stock market, you must be able to decide for yourself regarding investment. Believe me, until you can’t analyze the market technically you can never earn from NEPSE in the long term unless you have the powerful blessings of Goddess Laxmi. There are people on Facebook, Whatsapp, Youtube, and Viber influencing you to buy/sell stocks. Don’t believe in them because no one knows the direction of flowing rainwater. Everyone knows water always flows downwards, but they don’t know the volume of water.