meroshareThe Nepal share market is a topic of conversation everywhere these days, from dinner tables to roadside tea booths. Don’t worry if you’ve heard a lot but still don’t know where to start! We’re here to help you get started on your investment journey by educating and guiding you.
The goal of the investment is to place your money in one or more types of investment vehicles with the hope that it will increase over time. Different investment instruments carry varying degrees of risk.
Many individuals still choose to put their money in banks, financial institutions, and cooperatives as savings or fixed deposits. This is clearly the safest investment, but the return is only a few percentage points, which is insufficient to offset the current inflation rate.
Another option is to invest in mutual funds, which commit your wealth to a select group of skilled professionals who collect money from people like you, invest it in various businesses, and return it to you. This means less risk because someone more knowledgeable and experienced would invest on your behalf, but it may come with a lot of fees and limits.
If you want to invest your money on your own, you may look into the Nepal share market. It has a higher risk than the other options, but it also has the potential to produce the highest rewards.
What is a share/ stock?
A share is a document that certifies your ownership in a corporation; you may sell it to others or keep it for yourself in order to get equal parts of the company’s profits.
What is a stock exchange?
A stock market is a place where people may purchase and sell publicly traded shares. To encourage the public exchange of buyers and sellers, an official marketplace for investors to buy and sell their shares has been established. One such entity in our nation is the Nepal Stock Exchange (NEPSE).
Now that you know what a share and a share market are, let’s look at the things you’ll need to get started.
Bank Account
If you don’t already have one, now is the time to get one. You are free to create an account with whatever bank is most convenient for you.
Some banks waive account opening fees, while others require a minimum deposit. Again, each bank offers a variety of savings accounts with varying benefits; choose the one that best meets your needs.
DEMAT (Dematerialized Account)
A dematerialized (DEMAT) account holds the account holder’s shares in his or her name. One of the conditions for participation in both main and secondary markets is to open a DEMAT account with a Depositary Participant (DP) authorized by the Central Depository System and Clearing Limited (CDSC).
Your shares are electronically kept in a Demat account. Many commercial banks, merchant bankers, and stockbrokers provide such services. You may go to your favorite bank and fill out a Demat form, which you can then submit. Some brokers now provide the possibility of creating a Demat account online.
If you already own any stocks, you can request that your DP convert your physical share certificates to dematerialized shares. The DEMAT account functions similarly to a bank account, debiting and crediting the shares you buy and sell.
Meroshare account
Having a mero share account, while not needed, will make your life simpler. It enables you to apply for IPOs, FPOs, and right shares online rather than visiting a bank or stockbroker.
It also allows you to see all of the stocks in your portfolio, calculate the weighted average if you acquired shares at different rates over time, and transfer shares from your Demat account when you sell a stock.
It is one of the tools you will use on a regular basis during your financial journey.
You can open a mero share account and a Demat account simultaneously. You just need to fill out one meroshare form and attach it to your Demat application. If your application is accepted, you will be notified through email at the address you provided in the form. Keep an eye on it in case it ends up in your spam folder.
Trading Account
A Demat account and a trading account work in tandem. Demat stands for ‘dematerialized,’ meaning that it is a safekeeping facility for your shares. A trading account, on the other hand, is used to purchase and sell stocks on the Nepal stock exchange.
To participate in the secondary market, you must first create a trading account at a stockbroker’s office. Over 50 stockbrokers have been licensed by NEPSE, and there are a few stockbroker offices outside of Kathmandu.
When you open an account with a stockbroker, you will be given a unique ID code that will be used to complete any transactions in your name. You will also receive an email containing login details and a link to the broker TMS.
Simply enter your credentials into the broker’s TMS to place a buy or sell order. A brokerage fee is levied by the stockbroker for each transaction, and you must additionally pay capital gain tax of 7.5% or 5% if you sell your shares.
ConnectIPS
This isn’t essential, but it will make putting money (collateral) into TMS to acquire shares easier. To create a Connect IPS account, you must first fill out an online form. You must print and send the form to your bank after completely completing it.
You are now prepared to access both the primary and secondary markets and begin your journey in the Nepal share market.
NEPSE Primary Market
Applying for primary market offerings, such as an IPO or a Further Public Offering (FPO), is one of the finest methods to participate in the capital market (FPO).
The vast majority of companies offer primary issues to the general public at face value or at a premium depending on their valuations. When you buy in the primary market, you lessen your risk since you have the opportunity to purchase shares at a lower price than when you buy them in the secondary market after they have been listed.
How can I apply for an IPO, FPO, or right shares?
Log in to your meroshare account and choose MY ASBA to view the current IPO/FPO/Right shares. The list of firms available to apply may be seen under Apply for Issue. You may read their prospectus to learn more about their past and future performance, as well as management.
You may click apply, input your bank account, number of kitta, CRN number and proceed. Following that, you must enter your transaction pin.
NEPSE Secondary Market
If you’re wondering how to sell shares online in Nepal, you should be aware of the secondary market. The Nepal Stock Exchange (NEPSE), the secondary market, lists all of the securities offered in the primary market; the stock exchange today has over 200 corporations listed.
The secondary market is a marketplace where you may sell current shares and purchase new ones. The NEPSE Index and the share prices of these listed companies change on a daily basis (Sunday through Thursday) based on the market’s general demand and supply of shares.
Assume you applied for an IPO and were lucky enough to be assigned 10 kitta. You may sell the 10 kitta on the secondary market after the business is listed which you can accomplish via entering into your TMS account.
How Can I Sell Shares Online in Nepal?
If you have been assigned an IPO and are wondering how to sell shares online, you must first open a broker account. If you have set up a broker account, the assigned share will appear in your TMS. Once you access your TMS, you might find Order Management on right side, click on it. Under that option you can notice Buy/Sell option, click on that. It will open a window in the main area where you can enter the Scrip name, the quantity you want to sell, the price you want to sell, and by clicking submit, you may sell share online in Nepal.
Nepal Stock Exchange News
To begin investing in the Nepal share market, you must first know how the market operates.
The Securities Board of Nepal, the country’s sole capital market regulator, is an excellent location to begin your search for original data. Its website contains information on securities regulation, investor education, and upcoming public offerings, among other things.
Similarly, the Nepal Stock Exchange is the country’s sole secondary market, and its mobile-based app is an excellent method to obtain Nepal share market live data.
Many more prominent websites for Nepal Share Market News, such as Share Sansar, Mero Lagani, and Nepsealpha, provide frequent capital market updates. Furthermore, daily national newspapers, merchant banker websites, and a credit rating agency all provide essential information on Nepal share market news, events, and announcements.
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