Here is what you may need as a Beginner in NEPSE. The Nepali stock market (NEPSE) has become one of the most popular investment options among the general public. With growing interest in IPOs and secondary market trading, thousands of new investors are joining NEPSE every month. But how do you actually begin your journey as a stock market investor in Nepal?
This complete beginner’s guide will walk you through every step—simple, clear, and practical.
Step 1: Open a DEMAT Account
A DEMAT (Dematerialized) account is a digital locker for your shares. Without it, you can’t invest in the stock market or apply for IPOs.
How to get it:
- Visit any bank or Depository Participant (DP)
- Submit a citizenship copy, passport-size photo, and fill a DEMAT form
- Pay a small annual fee (usually NPR 50–100)
You’ll get a 16-digit BOID number once it’s ready.
Step 2: Get Your Bank Linked with C-ASBA
You need a bank account that supports C-ASBA (Centralized Application Supported by Blocked Amount). This system blocks your IPO amount during application and unblocks it if you’re not allotted.
Tip: Choose a bank that offers online C-ASBA services to apply from home.
Step 3: Activate MeroShare and Get CRN Number
MeroShare is an online portal to apply for IPOs, rights shares, view shareholdings, and more.
What you need:
- Request MeroShare login from your DP
- Request a CRN (C-ASBA Registration Number) from your bank
Both are essential to apply for IPOs online.
Step 4: Apply for IPOs Smartly
Once your accounts are ready, you can apply for IPOs through MeroShare.
Best practices:
- Apply on the first or second day of the IPO
- Apply for the minimum lot (usually 10 shares) to increase chances
- Use family members’ accounts for more applications (each must have separate DEMAT, CRN)
IPOs in Nepal are allotted by lottery, so more applications = more chances.
Step 5: Understand the Company Before You Invest
Don’t just apply for any IPO. Read the prospectus (available in MeroShare) and ask:
- Why is the company raising funds?
- Is it making a profit?
- Who are the promoters?
- What’s its future plan?
Look at credit ratings and compare with other companies in the same sector.
Step 6: Start Learning About NEPSE and Trading
After IPO allotment, your shares are listed on NEPSE. You can now:
- Sell shares through a broker
- Buy more shares from the secondary market
To do this:
- Open a broker account (physical visit or online)
- Learn how to place buy/sell orders
- Track market trends and company performance
Step 7: Decide Your Strategy – Hold or Trade?
You can:
- Sell shares quickly after listing for short-term profit
- Hold long-term for dividends, bonus shares, and capital growth
Choose your plan based on your goals and the company’s performance.
Step 8: Diversify Your Investment
Don’t invest all your money in IPOs or a single company. Diversify across:
- Hydropower, banks, insurance, mutual funds
- Short-term and long-term stocks
- Risk levels
Diversification reduces risk and builds a more stable portfolio.
Common Mistakes Beginners Should Avoid
- Applying for IPOs without research
- Forgetting to renew DEMAT or MeroShare accounts
- Not tracking allotted shares
- Selling too early or too late in panic
