NEPSE 101: A Beginner’s Guide to Investing in the Nepal Stock Exchange

The Nepal Stock Exchange (NEPSE) has transformed from a little-known trading floor to a booming marketplace attracting thousands of new investors each year. Whether you're a student looking to grow savings, a young professional curious about passive income, or someone exploring long-term wealth-building tools, this guide will walk you through everything you need to start investing in NEPSE.

🔹 What is NEPSE?

NEPSE stands for Nepal Stock Exchange—the only stock exchange in the country. It was established in 1993 to facilitate trading of listed shares, bonds, debentures, mutual funds, and derivatives. The platform is regulated by the Securities Board of Nepal (SEBON) and transactions are settled through the Central Depository System and Clearing Ltd. (CDSC).

NEPSE has grown rapidly in recent years, thanks to increased participation from retail investors, technological upgrades, and regulatory reforms.

🔹 Step 1: Open a Demat Account

Before you can buy or sell shares, you must have:

A Demat Account: This is like a digital locker where your shares are stored electronically.
A Mero Share Account: Provided by CDSC, this platform allows you to apply for IPOs, transfer shares, and check your holdings.

📍 Where to open?
You can open a Demat and Mero Share account at any of these institutions:

Commercial banks (e.g., Nabil, Global IME, NMB)
Merchant bankers (e.g., NIBL Ace Capital, Prabhu Capital, NIC Asia Capital)
Stock brokers (licensed by SEBON)

💡 Required Documents:

Citizenship (or passport for NRNs)
Passport-size photo
Bank account
Mobile number and email

🔹 Step 2: Choose a Licensed Stock Broker

Stock trading in NEPSE happens through licensed brokers, not directly. You’ll need to:

Register with a broker (visit physically or do online KYC)
Get a Trading Management System (TMS) login
Use the broker’s TMS portal to buy/sell shares

💼 Examples of popular brokers:

Naasa Securities (Broker 58)
Midas Stock Broking (Broker 21)
Prabhu Securities (Broker 42)

🔹 Step 3: Understand the Types of Securities

Here’s what you can invest in:

Asset Type	Description
Common Shares	Ownership in public companies (banks, hydros, etc.)
Preferred Shares	Hybrid shares with fixed dividend rights
Debentures	Long-term bonds issued by companies (e.g., 10-year debentures at 8% interest)
Mutual Funds	Pooled investment vehicles (e.g., NIBLSF, NICGF)
IPO/FPO	Initial and further public offerings from companies

🔹 Step 4: How to Buy or Sell Shares

Buying shares:

Login to your broker’s TMS portal
Select the stock symbol (e.g., NABIL, HIDCL, NRIC)
Place your buy order (limit price or market price)
Wait for the order to match

Selling shares:

Transfer your shares from Mero Share to your broker using E-DIS
Place your sell order on TMS
Wait for order execution

🕓 Settlement takes T+2 days, meaning if you buy today, shares will reflect in your account after 2 business days.

🔹 Step 5: Learn to Read Market Data

On NEPSE or third-party platforms like Nepse Alpha, Merolagani, NepalStock.com, you can view:

Market Capitalization: Total market value of a listed company
LTP (Last Traded Price): The latest trade price
52-Week High/Low: Price volatility over the year
Volume & Turnover: Number of shares traded and total value

🔹 Step 6: Explore Investment Strategies

Here are common strategies used by NEPSE investors:

IPO Hunting: Apply for all IPOs; usually offers quick short-term profit
Dividend Investing: Hold stocks with consistent dividend history (e.g., NABIL, HBL)
Growth Investing: Focus on fast-growing sectors (hydropower, fintech)
Swing Trading: Trade based on short-term price patterns (RSI, MACD, volume)

🔹 Step 7: Risks You Must Know

Stock investing isn’t a guaranteed profit machine. Be aware of:

Market volatility: Prices can swing 5–10% in a single day.
Speculative bubbles: Many new investors fall for pump-and-dump schemes.
Liquidity risk: Some low-volume stocks are hard to sell when needed.
Regulatory risks: SEBON or NRB may introduce sudden rules affecting trading.

Always do your own research (DYOR) and never invest based on tips from social media groups.

🔹 Final Thoughts

Investing in NEPSE is one of the best ways to grow wealth in Nepal, especially if you’re in it for the long term. But like any market, it requires learning, discipline, and risk awareness. Start small, educate yourself, and diversify your portfolio. And remember: The goal is not just to earn, but to grow smarter with every trade.