How to buy shares on NEPSE (a beginner's guide)
A plain-language, step-by-step guide to opening a Demat and Meroshare account, applying for IPOs, and buying or selling shares on the Nepal Stock Exchange (NEPSE) the legal, safe way.
Buying shares on NEPSE — the Nepal Stock Exchange — means becoming a part-owner of a company like a commercial bank, an insurer or a hydropower firm. When the company does well, the value of your shares can rise and you may receive dividends; when it does badly, the value can fall. The whole point of this guide is to show you the correct, legal way to start, so you never have to hand your money to a stranger or a 'guaranteed return' agent.
NEPSE is Nepal's only secondary share market. It began trading in 1994 and is supervised by the Securities Board of Nepal (SEBON), with the CDS and Clearing Ltd (CDSC) holding shares electronically. Because everything is regulated and electronic, you do not need cash, paper certificates or middlemen — just a few accounts and a phone or computer.
Do not feel rushed. Many Nepalis lose money not because the market is unfair, but because they buy on a friend's 'tip' without understanding what they own. Read this fully, start small, and treat the first few months as learning.
The three accounts you need
Before you can hold a single share, you need three things linked together. A licensed bank or broker (a Depository Participant, or DP) sets them up for you.
- Demat account — an electronic locker (with CDSC) where your shares are stored instead of paper certificates.
- Meroshare account — the online portal (run by CDSC) where you apply for IPOs and see your holdings.
- Trading/broker account — an account with a SEBON-licensed broker so you can buy and sell on the market. Many brokers also offer a TMS (Trade Management System) login.
Step 2 — Apply for an IPO (the easiest start)
An IPO (Initial Public Offering) is when a company first sells shares to the public, usually at the face value of Rs 100 per share. For ordinary IPOs, allotment is often done so that small applicants have a fair chance, which makes it a low-risk way to begin.
Log in to Meroshare, open the 'My ASBA' or 'Apply for Issue' section, select the open issue, enter the number of units (the minimum is commonly 10 units), choose your linked bank (CRN), enter your transaction PIN and submit. The money is only deducted from your bank if shares are allotted to you.
Step 3 — Buy and sell on the secondary market
Once you have shares (from an IPO, dividend, or purchase), you can trade them on NEPSE through your broker's TMS during market hours on trading days. Log in to the TMS, search the company's symbol, place a buy or sell order with your price and quantity, and confirm.
After a trade settles, the shares move into or out of your Demat account and money is transferred through your broker. Remember that every transaction has costs — brokerage commission, a SEBON fee, a DP charge, and capital-gains tax on profits — so very frequent trading eats your returns.
Understanding the costs and taxes
Trading is not free. On top of the share price you pay brokerage commission (a small percentage that decreases for larger trades), a SEBON regulatory fee, and a per-company DP charge when you sell. When you sell at a profit, capital-gains tax is deducted.
Capital-gains tax rates and brokerage slabs are set by the regulator and government and can change with each budget, so always confirm the current rates with your broker rather than assuming an old figure. The key takeaway: build the costs into your thinking, and do not trade in and out so often that fees swallow your gains.
How to choose what to buy (without 'tips')
Never buy a share only because a relative, a Facebook group or a 'sure-shot' Viber tip says it will double. Look at the company itself: does it earn steady profit, pay reasonable dividends, and operate in a business you understand (banks, insurance, hydropower, manufacturing)?
Read the company's reports on its website and on NEPSE, check its earnings per share (EPS) and price-to-earnings (P/E) ratio, and compare it with similar companies. If you cannot explain in one sentence why you own a share, you are gambling, not investing.
Key takeaways
- ✓You need three linked things: a Demat account, a Meroshare account, and a broker/trading account from a SEBON-licensed firm.
- ✓IPOs (applied through Meroshare) are the simplest, lowest-risk way for beginners to start, and money is only taken if shares are allotted.
- ✓Buy and sell on the secondary market through your broker's TMS during trading hours.
- ✓Every trade has costs — brokerage, SEBON fee, DP charge and capital-gains tax — so avoid over-trading.
- ✓Choose shares by studying the company's earnings and business, never by social-media 'tips' or promised returns.
How to Buy Shares on NEPSE — FAQ
How much money do I need to start investing in NEPSE?+
Very little. A typical IPO has a minimum of 10 units at Rs 100 face value, so you can begin with roughly Rs 1,000 plus small account fees. The secondary market depends on the share price, but you can buy a small lot to learn.
Is the share market gambling?+
Investing in good companies for the long term is not gambling — you own a real business that earns money. It becomes gambling when you trade blindly on tips, borrow money to buy, or chase 'guaranteed' returns. The risk you take should always be one you understand.
What is the difference between an IPO and the secondary market?+
An IPO is the first time a company sells shares to the public, usually at Rs 100 face value through Meroshare. The secondary market is where investors then buy and sell those shares from each other on NEPSE through brokers, at prices that move up and down daily.
Can I lose all my money in NEPSE?+
You can lose a large part if a company performs badly or you sell in a panic, but a diversified, long-term investment in solid companies is far safer than 'double your money' schemes. Never invest money you need for rent, school fees or emergencies.
Who regulates the share market in Nepal?+
The Securities Board of Nepal (SEBON) regulates the market, NEPSE runs the exchange, and CDS and Clearing Ltd (CDSC) holds shares electronically and handles settlement. Always trade through SEBON-licensed brokers.
Sources & data note
These guides explain widely-accepted SEO, AEO and GEO practice as documented by Google Search Central, schema.org and current industry research. Search and AI systems evolve continually — treat specific thresholds (e.g. Core Web Vitals targets) as current guidance and verify against the latest official documentation. Examples are tailored to Nepal's market.