Stock Market of Nepal: Everything to know about!

Estimated read time 3 min read

The stock market in Nepal is still relatively new, having been established in 1993. However, it has been growing rapidly over the past few years. This article provides a basic introduction to the Nepal stock market for beginners.

What is the Nepal Stock Exchange?

The Nepal Stock Exchange (NEPSE) is the only stock exchange in Nepal. It is located in Kathmandu and has a market capitalization of over NRs 3 trillion. 

Companies listed on NEPSE include banks, manufacturing companies, hotels, and insurance companies. You can find insightful Nepal stock market commentary and analysis on sites like gngfinance, sharesansar etc.

Getting Started with Investing

To start investing in the Nepal stock market, you need to open a Demat account with a Depository Participant (DP). The DP will give you a BOID (Beneficial Owner Identification Number) which allows you to hold and trade securities electronically.

 You also need to open a separate trading account with your brokerage firm. This links your Demat account to the trading platform.

You can open Demat and trading accounts with leading brokerage firms like NMB Capital, Civil Capital, Sanima Capital, etc. 

The minimum amount to open an account differs based on the brokerage firm. You also need to complete your KYC (Know Your Customer) verification before your account becomes operational.

Learn more: How to Create a Meroshare and Demat Accounts Online?

Trading Hours and Settlement

NEPSE operates on a T+3 rolling settlement cycle i.e. settlement of transactions done on a particular day happens after 3 working days. The market is open Sunday to Thursday from 11AM to 3PM for trading under the automated ASBA system. You can place orders with your broker over the phone or using their online trading platforms.

Understanding Share Prices 

Share prices in the Nepal stock market fluctuate frequently. Prices are driven by demand and supply, company performance, economic conditions, and market sentiment. You can check live share prices on the NEPSE website or in business newspapers.

Risks and Returns 

Like any investment, stocks have risks and returns. Share prices can be volatile in the short term but may give higher returns in the long run. It is important to diversify across sectors and companies to minimize risks. Invest only money you can afford to lose.

Conclusion 

The Nepal stock market offers an avenue for long-term wealth creation for Nepali citizens. Do thorough research, consult a broker, diversify your portfolio, and invest wisely. The market is still developing but holds exciting growth prospects for the future.

You might be interested: Upcoming IPO this week in Nepal

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