Stock market of Nepal is still in beginning phase. After the Coronavirus pandemic many people are interested in the stock market. Because many people stayed at home and searched for a way to make money online as they were unable to go outside. Nowadays investing in stock is becoming easy. You can apply for the share on the tap of a finger, and become the owner of any company. But if you are a beginner to the investment world and want to know how you can do it you are at the right place. The following steps need to be followed to start investing in the stock market in nepal.
1. Bank account
The very first step to start investing in stock is to have a bank account under your name. To open a bank account you just need a citizenship card and passport size photo.
Go to any A listed bank to open a bank account and they will do all the proceeding. After opening a bank account they will give you a notice through your given mobile number. If you get an app for banking services, you can have all the information that you need in future so mobile banking is highly recommended.
2. Apply for a Demat account
Demat account is for the transaction of the share like a bank account for the bank services. This is the place where all the transactions you do record. To apply for the demat account you can simply open with the bank where you have your bank account, otherwise you can open your demat account with any of the 50 broker that are licensed from securities board of nepal *(SEBON). After opening a demat account they will give you a unique eight digit BOID number, which is basically the account number of your demat account.
3. Getting a CRN number
After getting a BOID number, you have to visit a bank for a C-ASBA number and fill up the application form. A few days you get the CRN number from the bank which they already linked with your bank account. This number is needed while purchasing a stock in the future.
4. Opening a mero share
With technology, to purchase stock you have to no longer go to a bank. To do that you have to apply for the mero share account. After a few days they will email you a username and temporary password. Mero share is an app which you can install from Play store or App Store. For the installation put your bank name in depository participant and use the given info by bank. After signing up, change a password that is easy to remember to use in the future, and it's ready to go.
5. Apply for IPO
Applying for your first IPO might sound intimidating, but don't fret. Open your mero share account and in my ASAB you can see the IPOs there, click to the apply option then a proceed page will be open, continue that and you can apply for 10 kitta share. Fill the remaining option, pur CRN number and click that term and conditions given by mero share, and you're done. Now wait until the result announcement, and if you get it you can see your share in my share options of mero share and if you didn't, don't get disappointed, there will be new IPOs opening in the future.
6. Open a trading account
if the stock or ipo is on your hand and expected to grow in the future you can hold it, otherwise if it is not worth holding you can sell them. To do that you have to open a trading account, so while purchasing and selling you don't have to always go to the broker. To open a trading account in Nepal, you can go to any 50 brokers that are licensed from SEBON and apply for the account. You will need 2 IDs that might be citizenship and license or voter ID or pan card. They verify KYC form and after opening account in TMS they will email username and password. This will be the one time password as well, so change after logging into, then you will be able to trade using URL sent by broker .
Reading a blog and actually opening your account is a big step. Because the process of opening an account will give you much more idea about its environment. If this article was helpful to you or have questions regarding this you can always leave a comment below.