Beginner's Guide to Investing in NEPSE
If you want to start investing in Nepal's stock market (NEPSE), follow this simple step-by-step guide.
Step 1: Open a Bank Account
First, you need a bank account in a Class ‘A’ commercial bank. This helps in applying for IPOs easily.
Want to learn more about banking in Nepal? Click here.
Step 2: Open a DEMAT Account
A DEMAT account is needed to store shares. You can open it at any bank’s capital subsidiary or a Depository Participant (DP).
- You can have two DEMAT accounts, but you can apply for IPOs using only one.
- Applying from multiple DEMAT accounts for IPOs may blacklist your account.
Step 3: Link Bank and DEMAT with C-ASBA
To apply for IPOs, you must link your bank and DEMAT account with C-ASBA. You need to submit a C-ASBA form at the bank.
After submitting the form, you will receive a CRN Number. This is needed to apply for IPOs.
Step 4: Get MeroShare Access
MeroShare allows you to:
- Apply for IPOs online
- Check your share details
- Transfer shares electronically
To activate MeroShare, submit a form at your bank’s capital subsidiary.
How to Start Trading in the Secondary Market
1. Open a TMS (Trading Management System) Account
To buy and sell shares in the stock market, you need a TMS account, which you can open with a stockbroker.
2. Set Up ConnectIPS
ConnectIPS helps transfer money from your bank to the stockbroker for buying shares.
Investment Options in Nepal
- IPO (Initial Public Offering) – Low risk, safe investment.
- Mutual Funds – Managed by professionals, good for beginners.
- Secondary Market Trading – Stock prices go up and down. Needs research.
Final Thoughts
Now you know how to invest in NEPSE! Start with an IPO or mutual funds if you're a beginner, and always research before investing.
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