Your First Steps to Stock Market investing in Nepal

Nepal Stock Exchange Building in Kathmandu

Here's a beginner's guide to get you started on your investment journey in Nepal.

Educate yourself

Knowledge is power, especially when it comes to investing. Before diving into the world of stocks, take the time to educate yourself. Learn the basics of stocks, shares, and market trends and understand the Nepal Stock Exchange (NEPSE) and how it works.

Key Information:

NEPSE: The Nepal Stock Exchange is the sole exchange for buying, and selling company shares in Nepal. Established under the Companies Act 2006 B.S. and operating under the Securities Act 2007 B.S., Nepse opened its trading floor on 13th January 1994.

Open a Demat Account

A Demat account is your digital wallet for holding shares. By opening a demat account, you can easily buy, sell, and hold shares electronically, Manage your portfolio online anytime, anywhere, and Receive dividends directly in your bank accounts.

• A Demat account can be opened through any Bank or Broker registered as a Deposit participant with CDS and Clearing Limited, Nepal's central depository.
• Required Documents: Submit the necessary documents, which include Identity proof, address proof, PAN card, a recent photograph, and bank account details.

C-ASBA Registration (CRN)

Centralized Account Supported by Blocked Amount System: Implemented since Falgun 11, 2074, as per SEBON's requirement, C-ASBA links all banks and financial institutions providing ASBA services with demat accounts. This centralized system allows issue managers and share registrars to verify applicants' details for any issue (IPO/FPO/Right Share/Mutual Funds), streamlining the issuance of securities.

Open a Trading Account

A Trading account is crucial for active investors who want to buy and sell securities frequently. It allows you to execute trades quickly and efficiently.

• A Trading Account can be opened through any of the 50+ Members of Nepse, who can act as intermediaries in buying and selling government bonds and listed corporate securities.
• Required Documents: Submit the necessary documents, which include Identity proof, address proof, PAN card, recent photograph, bank account details, and demat account details.

Tips:

1. Do Your Research: Analyze company financial statements and market trends, Consult with a financial advisor for personalized advice.
2. Start Small and Diversify: Begin with small investments and gradually increase them, Invest in various stocks to spread risk. Consider mutual funds for professional management.
3. Be Patient and Disciplined: Focus on long-term growth, not short-term gains, Avoid impulsive decisions and stick to your investment plan. Regularly review and rebalance your portfolio.

Disclaimer: 

This Information is Intended for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement of any specific investment or financial strategy.