KATHMANDU: We're all seeking for an investment opportunity that will allow us to get the most out of our hard-earned cash. Some of us are willing to take on more risk in order to get higher rewards. Others, on the other hand, are content with a reasonable return with a modest amount of risk.
Finding the correct spot to invest in our Nepalese market is the main problem. The stock market is one of the best locations to put your money for future rewards. The Nepalese stock exchange allows investors to buy and sell securities from companies listed on the exchange. You can also apply for a company's principal share offerings. You can start investing in these companies with a little amount of money or by putting aside a portion of your salary on a regular basis.
In this article, we'll go through the essential requirements for getting started in Nepal's stock market. Before you can apply for a share of a company listed on the primary market or buy/sell shares on Nepal's secondary market, you must go through the following steps.
1) Open a Bank Account
To begin, you must first go to one of the approved BFIs and open a bank account. You'll need a citizenship certificate, as well as other documentation, for this.
2) Demat Account
A demat account is now required to invest in the Nepalese stock market, whether primary or secondary. Shareholders used to possess their shares in the form of a physical share certificate. Shareholders can keep their shares in an electronic form with a demat account.
The shares you buy and sell in the stock market are debited and credited in your demat account in the same way they are in a bank account. You can open a demat account even if your account has no shares in it. You can either visit approved BFIs, brokers, or merchant bankers to open a demat account.
3) C-ASBA Number
C-ASBA (Centralized Application Supported by Block Amount) is a more advanced version of ASBA that allows investors to apply for primary and secondary offers online. To obtain a C-ASBA registration number, go to an approved bank where you have a bank account and fill out the C-ASBA form.
To fill out the C-ASBA form, you'll need your demat account details. You can apply for main and right shares of the issuing firms after you have a CRN number. This number is not required to purchase or sell shares on the secondary market.
4) Mero Share Account
Mero share is particularly valuable to investors since it allows them to invest in shares simply and immediately from their homes over the internet. You only have to pay Rs. 50 per year to use this service. Using Mero share, you can easily apply for primary and right offerings.
Similarly, you can use the EDIS service to transfer your shares directly to your broker. To acquire this service, simply go to your bank and fill out a form. To obtain your login id and password, you must provide an email address. To learn everything there is to know about Mero share.
5) Broker Account TMS
You must choose one of the 50 brokers allowed for stock trading if you wish to purchase and sell shares on the secondary market. It is preferable to find a brokerage business with an office close to you when creating a brokerage account.
Create an account with a broker and then place an order to purchase or sell shares in firms listed on Nepse. Your transaction will be placed by the broker using a unique code that you will receive. To see a list of brokers, click here.
So, after completing the five stages above, you are ready to trade primary and secondary shares in Nepal's stock market.
