How to start investing in stock market of Nepal?

We're all seeking for investment opportunities to get the maximum return on our money that we can. Some of us are prepared to take on more risk in order to get higher rewards. However, other people are content with receiving a respectable return at a modest degree of risk.

Finding the ideal location to invest in on our Nepalese market is the main challenge. The stock market is one of the best locations to put money in order to get returns in the future. Investors can purchase and sell the securities of the companies listed on the Nepal Stock Exchange through the Nepalese stock market. You can also apply for a company's initial share offerings. Starting with a small amount of funds or by setting aside a monthly sum of money from your salary, you can invest in shares of these businesses.

The fundamental conditions to begin trading on the Nepali stock market will be covered in this article. Before you can apply for a share of a firm that is offered in the main market and buy/sell shares on the secondary market of Nepal, you must go through the following process.

1) Open a Bank Account

You must first open a bank account at one of the authorized BFIs. For this reason, a citizenship certificate is required in addition to other paperwork.

2) Open  Demat Account

Demat accounts are now required in order to invest in Nepalese stocks on the primary or secondary markets.  Investors in shares used to keep their shares in a tangible form, known as a share certificate. Shareholders can hold their shares electronically with the use of a demat account.

Similar to a bank account, your demat account is appropriately debited and credited when you purchase and sell shares on the stock market. With no shares in your account at all, you can start a demat account. You can go to authorized BFIs, brokers, or merchant bankers to open a demat account. 

3) Get C-ASBA Number

A more advanced version of ASBA called Centralized Application Supported by Block Amount (C-ASBA) has made it possible for investors to apply online for initial and right offers. You must fill out the C-ASBA form in person at the authorized bank where you have your bank account in order to obtain the C-ASBA registration number.

To complete the C-ASBA form, you need the demat account details. You can apply for main and right shares of the issuing firms after you have a CRN number. This number is not required to purchase or sell shares on a secondary market.

4) Mero Share Account

Mero Share is particularly helpful for investors because it allows for simple and direct online share purchases from the comfort of their homes. You only need to pay Rs. 50 a year to use this service.Applying for primary and right offerings is simple with Mero share.

Similar to that, you can use the EDIS feature to transfer your shares directly to the broker. Simply fill out the form at your bank to receive this facility. To get your login information and password, you must enter your email address.

5) Broker Account

Choose one of the 50 brokers offered for stock trading if you wish to purchase and sell shares on a secondary market. It will be best if you choose the brokerage company with an office close to you while opening a brokerage account.

You can then place an order to purchase or sell shares of the companies listed on Nepse after opening a broker account. The broker will provide you a special code that you can use to place your transaction.

You are now prepared to trade in main and secondary shares on the Nepali stock market after completing the aforementioned five procedures.