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Basic Requirements: Buy/Sell Share in NEPSE (Nepal)

Tutor Chetan

NEPSE Trading

IPO/FPO

Basic Requirements To Buy and Sell Share in Share Market of Nepal:

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 which is growing Day by Day in Nepal. The Nepalese Stock Market facilitates the investors to Buy and Sell the securities of the companies listed on the Nepal stock exchange. Also, you can apply to the 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.

You need to go through the following process before you can apply for a share of a company offered in the IPO as well as Buy and Sell Shares in the secondary market of Nepal.

Follow the Following Steps:

a) Open a Bank Account

At first, you need to visit the bank to open your bank account. You need several documents and photos to open a bank account according to the bank policies, terms, and conditions. Don't forget to open Mobile Banking or Internet banking for Online financial transactions from your account. 

b) Open Demat Account

To invest in the Nepalese Stock Market either primary or secondary, you must need to have a Demat account.  Previously, Share Investors used to hold their shares in a physical form as a Share Certificate but nowadays Demat account facilitates Share Investors to hold their shares in an electronic form and manage them.

c) Link Bank Account with DMAT Account

The shares you buy and sell in the stock market are debited and credited to 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 visit the bank,  brokers, or merchant bankers. After that, you need to link your bank account with your DMAT account for the financial transactions to apply for IPO.

d) C-ASBA Number

Centralized Application Supported by Block Amount (C-ASBA) is an advanced form of ASBA that has allowed investors to apply for primary and right offerings share 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 the 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.

e) Mero Share Account

Mero share is very useful to the investors in order to invest in shares easily and directly from home through online. 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. You can view your share details and your portfolio of shares online from Mero Share Account. 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.

f) 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 and also online trading facilities. 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.

g) Create Connect IPS and Linked Bank

If you want to Buy and Sell in a secondary market then you must create Connect IPS and linked your Bank account with it. It helps to load collateral fun in your broker account which is required to buy any share in the secondary market. Without loading collateral you can't buy a share in the market. 

So, after following the above seven steps you are ready for trading in the primary and secondary shares in the stock market of Nepal.

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