How to Invest in Share Market in Nepal?

If you are very much willing to invest in share market in Nepal, you must know how to invest in share market in Nepal.

Invest in share market in Nepal is an easy process. However, you need to have knowledge about the share market of Nepal.

You have to have not in detail and deep knowledge about share market in Nepal but some basic knowledge in the related subjects of share market in Nepal.

Following are the subjects on which you need to have basic knowledge before deciding to invest in share market in Nepal.

1. The history of Nepal Share Market.
2. Which are the regulatory bodies of Nepal Share Market?
3. What are the policies related to Nepal Share Market?
   
4. What are the major affecting factors on Nepal Share Market?
   
5. Trading time of Nepal Share Market.
   
6. Brokers for stock trading in Nepal Share Market.
   
7. Software used for share trading in Nepal Share Market.
   
8. Types of trading services available in Nepal Share Market etc.

Nepal Stock Exchange is the only stock market in Nepal that manages the trading of securities. It is known as NEPSE in short.

In the Nepal share market, NEPSE is a legal body of the government of Nepal to manage the stock exchange.

Besides, there is a government controlling body for controlling and regulating the securities in Nepal share market which is known as Security Board of Nepal - SEBON in short. 

SEBON is the only government body that controls and regulates the Nepal Stock Exchanges. SEBON has the authority to control and regulate the securities in Nepal. 

There is a separate act for regulating and controlling the securities in Nepal. It will be good to read know the act.

Political changes or political news, most of the time, affect the Nepal share market as it happens in other markets of the world.

When you will be known and aware of those points, you can now be prepared to invest in Nepal share market.

How Can I Start to Invest in Share Market in Nepal?

There are not such a huge difficulties to start to invest in share market in Nepal. Investing in the Nepal share market can be done by following these simple and easy steps:

Step 1: Open a Demat Account

First of all, if you are thinking to invest in share market in Nepal, you have to think about the process to enter into it.

To enter into Nepal share market to invest in stocks, you need to have a demat account first.

You can open your demat account through any one of the commercial banks of Nepal and their subsidiary companies. Only the thing is you have to submit the documents that are necessary for the opening of Demat account.

Then you can have the Demat account which is called Mero Share account. Mero Share is an application that is used to manage the shares of stocks. Mero Share application is managed by CDS and Clearing Limited.

Step 2: Open a Brokerage Account

The next step is to open a brokerage account with a licensed stockbroker in Nepal to invest in share market in Nepal. You can apply online for a broker account opening.

There are 50 brokers in Nepal share market till now. They are licensed brokers dedicated for share brokerage. You can open an account with anyone of these fifty brokers.
You will need to provide some basic information, identification documents, and financial information like your bank account, demat account and demographic details etc.

There is a unified software for all brokers dedicated for share trading which was developed by Nepal Stock Exchange (NEPSE). The software used in share trading is known as Trading Management System (TMS).

Now, you need to open a TMS account with any of those brokers. The TMS account is also known as the brokerage account.

Once you apply for the brokerage account, the broker will provide you a username with a password to access the trading facilities in Nepal share market.

Step 3: Fund Your Account

Once your brokerage account is open, you need to deposit funds into your brokerage account to start investing in share market in Nepal.

It means you can start to invest in share market in Nepal by loading the collateral amount in your brokerage account known as TMS account.

There are various ways of transferring funds into the brokerage account. You can transfer funds from your bank account or other sources like connect ips, eSewa, Khalti Apps etc.

Read more to know how to load collateral in TMS online to invest in Nepal share market.

Step 4: Choose Your Investments

Before starting an investment, you need to research to find the best ways of investing in the stock market.

You need to do a fundamental as well as technical analysis of stocks. With the findings of your research and fundamental analysis of stocks, you will be able to select the best stocks to invest in Nepal Stock Market.

You can use online platforms to access market data and analysis to make informed decisions.

The website of Nepal Stock Exchange is the main source of data for Nepal Stock Market.

Some of the other major online platforms to access the market dara are nepsealpha.com, sharesansar.com, merolagani.com etc from where you can find the data to analyse the market.

Step 5: Place Your Trade

You have opened the brokerage account which is TMS Account; you have transferred the collateral amount to the brokerage account and understand the way of using TMS account and software.

Now, you have to have knowledge about how to buy share in secondary market in Nepal. It means you need to know the way of operating your TMS account.

To buy share in secondary market in Nepal, you have to login to your brokerage account which is TMS account with the provided user ID and password.

You can place the orders during the Nepse live market time. There are two sessions for share trading.

One is pre-open session which starts from 10:30 am and ends at 10:45 am. The next session is a regular session. The regular session starts at 11 am and ends at 3:00 PM.

You can place your trades online or through your broker during those sessions. You will need to specify the number of shares you want to buy or sell and the price you are willing to pay.

To buy and sell shares, you can use the Nepse live data with TMS account. You can use the online platforms for Nepse live chart accessibility.

When you want to buy share in secondary market in Nepal, you have to analyze the share market and the trend of Nepal share market.

How to Analyse Share Market in Nepal?

Analysing Nepal share market is a very important and essential aspect of investment in share market in Nepal.

If you move forward without analyzing the Nepal share market, you may be in trouble. So, it is very essential to analyze Nepal share market by using various sources to access the data.

If you think to invest for the long term and gain profit, you need to do fundamental analysis of stocks of Nepal share market.

If you think and decide to invest in share market in Nepal for short term gain as a trading, you have to do technical analysis by using Nepse live chart.

For technical analysis of Nepal share market through Nepse live chart, you can use different websites such as nepsealpha.com, sharesansar.com, merolagani.com etc.

You can access the Nepse live chart from nepsealpha.com for free with basic features.

Step 6: Monitor Your Investments

Keep an eye on the performance of your investments and adjust your portfolio as needed. The performance of the companies whose shares are purchased by you is important.

You need to research and do an in-depth study of the performance of the stocks which you have.

You have to do fundamental and technical analysis for monitoring of your investment status.

These are the major easy steps to be followed to invest in Nepal Stock Market. With these processes to start investing in Nepal Stock Market, you need to understand many more things. One of them is mentioned below.

There Are Limited Options of Trading in Nepal Stock Market

The important part which you have to know about the Nepal Stock Market is the limited choices or services of trading options.

When you buy the shares of stocks then only you can sell them. It takes two days of time to deposit the shares in your demat account which you purchased.

There is no facility of short-sell and options trading in Nepal share market.
You can earn from two ways in Nepal share market:

1. You can gain the dividend of your shares if the company performs well, earn money and want to distribute the dividend.
2. You can also gain capital with the increased price of shares in the market. For this you need to sell share with profit.

Finally, it is very important to note that investing in the stock market involves risk, and you should only invest funds that you can afford to lose. You should also consult with a financial advisor before making any investment decisions.

FAQs on 'How to Invest in Share Market in Nepal'

How to buy share from secondary market in Nepal?

You can buy shares of any stocks from secondary market in Nepal by opening the Demat account first and the broker account (TMS account).

Once you get the user ID with the Password of your broker account, you can place the order to buy share from secondary market in Nepal during Nepal share market opening period.

In general, Nepal share market opens from Sunday to Thursday of each week.

How to Open Share Market Account in Nepal?

To open share market account in Nepal, you have to open Demat account first from any of the commercial banks.

Once you have a Demat account, you can now apply to open broker account for share trading. You have to choose one of the brokers to apply for opening share market account.