Before going into details about buying and selling ways of shares in Nepal one should have knowledge about the primary and secondary markets.
A primary market is a place where the shares are issued for the first time. It is called Initial Public Offering(IPO). In Nepal IPOs are issued at par value of Rs 100. You can buy a share from the primary market when it is issued for the very first time. You can buy shares/stock online from the primary market by logging into meroshare. One can be able to buy IPO, FPO, Right share, Debentures, mutual funds from the primary market.
A secondary market is a place where you can buy/sells the desired number share of any company which is listed in NEPSE. Generally, you have to go to the broker office to buy and sell shares. There is 51 share broker in Nepal. You can visit any broker office for trading.
Note: You can buy shares online from the primary market but for selling of share than you have to visit the secondary market in the context of Nepal. You need to go to the broker office bid the price you want to sell and also mentioned the name of the company and the number of shares you want to sell.
Following are the steps to buy shares from the primary market in Nepal
Note: DMAT account is the account where your shares are kept. For example; In your bank account you keep the money. Similarly, you keep shares in your DMAT account.
- You need a bank account in any bank of Nepal. If you don’t have any banks account then go to your nearest bank and open your bank account.
- You need a DMAT account. Visit the bank where you have an account and ask for DMAT form. After filling the DMAT form you will get a login ID and password of meroshare. Some banks may charge. Generally, the charge is Rs 150. You will also get a CRN number which helps to link your bank account.
- After getting the login id and password of meroshare, login to meroshare.
- Go to My ASBA>Apply for Issue. You will be able to apply all the IPO, FPO, Right share, Debenture, and mutual funds.
- Select the company which is currently issued in the primary market.
- You will be able to see all the details about the number of shares that are issued and the minimum/maximum number of shares that you can apply.
- Fill the form by providing the required information and you will be asked to fill the CRN number, fill it carefully without making any mistakes.
Note: Don’t create multiple DMAT account and even if you do please apply from only one account otherwise your application will be rejected and you won’t be allotted any number of share.
Ways to buy a share from the secondary market
You can also buy shares from the secondary market. For this, you need a bank account with a DMAT account. DMAT account is an important factor or medium to buy a share. Without a DMAT account, you cannot buy shares or stock.
Visit broker office and you will be asked to choose a company to buy a share and also mention the quantity and price of the share.
Bonus tip: If you are new to the stock market or share market go through the primary market to buy a share as it is mentioned above. It will be easy for you to understand the market.
Following are the steps to sell the share in Nepal
- To buy a share you need to go to the secondary market as it is already mentioned above. But before going to the secondary market you need to have a DMAT check. For DMAT check you need to go to the capital of a particular bank where your DMAT account is. For example, I have a DMAT account on Global IME bank, and for DMAT check I have to visit Global IME capital. It is because the account of DMAT is controlled by the capital of the bank.
- After getting a DMAT check visit to the broker office and you have to open a broker account which is simple. Just fill the form and your broker account will be created soon.
- When your broker account is opened, you will be able to sell the shares of the company you wish to sell. You have to mention the name of the company you want to sell the share, quantity, and price of the share you want to sell.
In this way, you will be able to buy and sell the shares or stocks in Nepal. If you have any question then please go through the comment box.