Learn how you can buy-sell shares in Nepal (IPO + Secondary). As many individuals are interested in Share, here’s what you’d need to have to join the Share Market of Nepal. This is for the complete beginners and only guide to be part of the share market – the requirements and procedures may change in the future.
Here are a few things you need to do to join the Nepali Share Bazar :
- First thing first you need to have a BANK ACCOUNT – A bank account can be opened at any bank near you. But we do suggest to work with that bank which offers DEMAT ACCOUNT too as it will be much easier for you.
DEMAT ACCOUNT & MERO SHARE ACCOUNT
- The second thing you need to have is a DEMAT account – basically, it stores your share info in electronic form. To open a DEMAT account, you can ask your BANK to set one for you (normally charges Rs. 100 per year).
- In most cases, the same bank offers a MERO SHARE account too so while you fill-up the form for DEMAT also get the Mero SHARE account filled and submit the form. This will cost you about Rs. 50 per year and needs to be renewed every year. The purpose of mero share account is you can see all your info about shares, make a new share application to IPO, and as well will require to sell shares in the secondary market. Thus you must have DEMAT & MEROSHARE Account.
It may take a few days for you to get a DEMAT account & Mero Share account.
- Now the other important part is you will need to connect Mero share with the Bank – meaning when you apply for a share or anything then you must deposit the money for the value of shares you are applying. You don’t need to physically visit anywhere instead work through mero share. Thus it should be linked with a BANK to make the transaction.
- Simply visit the bank where you have your account, ask to connect your DEMAT & MERO SHARE account with the BANK, and get a CRN number. You will need to have DEMAT & MEROSHARE to acquire this.
With these, you can easily make an application to IPO. You will get the login info for MERO SHARE and from thereafter login in you will see MY ABSA using which you can apply for the IPOs. This will allow you to buy Primary shares (IPO) in the market but not to sell it.
BUY SELL IN THE SECONDARY MARKET
- Now if you wish to buy and sell Shares in the secondary market you will need an account with the BROKER. You can choose any brokers you like, fill the required form, and get the login info. You can also submit the broker form online https://tms40.nepsetms.com.np/client-registration (PLEASE NOTE THIS LINK IS FOR BROKER NO. 40, so whichever broker you want to open an account, kindly fill the form for that broker. There will only be a difference in number like it could be https://tms15.nepsetms.com.np/client-registration or https://tms16.nepsetms.com.np/client-registration etc. The number after tms is the broker number so choose the broker and fill the form or you can directly contact the Broker.
- You will then get the Broker login details (https://tms__.nepsetms.com.np) – with this you can SELL shares that are on your DEMAT but you will not be able to BUY one. In order to BUY shares you need to make a deposit to the broker (rule of broker might vary) but in most cases, if you deposit Rs. 5,000 to the broker you will be allowed to buy the share worth Rs. 20000 (4 times), so as per your need, make the necessary deposit.
- Suppose if you deposit Rs. 5,000, then you can buy a share of max Rs. 20,000 per day…once you buy the share settle the account with the Broker and then you can again make the purchase. If you have not settled the account, once reaching the limit, you will not be able to make the purchase.
- Settling an account with a Broker – basically depends on the broker, some use GLobal IME BANK, while many uses CONNECT IPS so talk to your broker and do it accordingly. The broker account usually does not charge any money (except for the deposit).
- Bank account, DEMAT account, Mero Share and with CRN number (you can get all these possibly from the same bank) you can buy IPO or one you are eligible of (like right shares, etc) – You will not require an account with a broker if you do not intend to buy shares in the secondary market or sell shares. Though you will need one in the future possibly.
- Having a broker account will allow you to SELL your shares but not make any purchases
- To make any purchase, make a necessary deposit to your Broker account, and you can buy shares on the Secondary Market
- Connect IPS is widely used to settle the amount after purchasing the share
Thus we hope you have learned the basic information on how you can buy-sell shares in Nepal (IPO + Secondary).