If you have been thinking about investing in shares in Nepal but do not know where to start, you are not alone. The Nepal Stock Exchange (NEPSE) has grown significantly over the past decade, with over 230 companies now listed across sectors like banking, hydropower, insurance, and microfinance. Yet for many people, the process of actually buying shares remains confusing.
This guide walks you through every step — from understanding what NEPSE is, to opening the accounts you need, to placing your first buy order.

What Is NEPSE?

NEPSE (Nepal Stock Exchange Limited) is the only securities exchange in Nepal. It was established in 1994 and is regulated by SEBON (Securities Board of Nepal). When you "buy shares" in Nepal, you are buying them through NEPSE's electronic trading system.
NEPSE operates Sunday through Thursday, from 11:00 AM to 3:00 PM Nepal Standard Time. This is different from Western markets that trade Monday through Friday. The market is closed on Fridays, Saturdays, and public holidays declared by the Nepal government.

What You Need Before You Can Invest

To buy shares on NEPSE, you need three things:

1. A DMAT Account (Demat Account)

DMAT stands for Dematerialized Account. It is where your shares are stored electronically. Think of it like a bank account, but for shares instead of money. In Nepal, DMAT accounts are managed by CDSC (CDS and Clearing Limited).
To open a DMAT account, visit any DP (Depository Participant) — these are typically banks and stockbrokers. You will need:
  • Citizenship certificate or passport
  • Recent passport-sized photographs
  • A bank account statement or cheque
The account opening fee varies by DP but is generally between NPR 100 to NPR 200, with an annual maintenance charge.

2. A MeroShare Account

MeroShare is the online system operated by CDSC. You need it to:
  • Apply for IPOs (Initial Public Offerings)
  • View your share balance
  • Check IPO allotment results
  • Transfer shares between accounts
Your DP will help you register for MeroShare when you open your DMAT account. You will receive a BOID (Beneficiary Owner Identification Number) — a 16-digit number that uniquely identifies your account.

3. A Broker Account (TMS - Trading Management System)

To buy and sell shares in the secondary market (shares already listed on NEPSE), you need an account with a licensed stockbroker. There are 50 active brokers in Nepal. Each broker provides access to their TMS (Trading Management System), which is where you place buy and sell orders.
You will also receive a CRN (Client Registration Number) when you register with a broker. This number links your trading activity to your DMAT account.

How to Buy Shares: Two Ways

Primary Market (IPOs)

When a company issues shares to the public for the first time, it is called an IPO (Initial Public Offering). You apply through MeroShare using the ASBA (Application Supported by Blocked Amount) process — this means the money stays in your bank account but is blocked until allotment is decided.
The minimum IPO application in Nepal is typically 10 kitta (units). If the IPO is oversubscribed (more applications than available shares), a computerized lottery determines who gets allotted. Most IPOs in Nepal are heavily oversubscribed.

Secondary Market (Buying Already-Listed Shares)

To buy shares that are already trading on NEPSE, log into your broker's TMS portal. You can place:
  • Market orders — buy at whatever the current price is
  • Limit orders — set a maximum price you are willing to pay
Settlement in Nepal follows a T+2 cycle, meaning shares are credited to your DMAT account two business days after the trade.

Understanding the Costs

When you buy or sell shares on NEPSE, several fees apply:
  • Broker commission: Ranges from 0.36% to 0.40% depending on trade value (lower percentage for larger trades)
  • SEBON fee: 0.015% regulatory fee
  • DP charge: NPR 25 per transaction for transfer
  • Capital gains tax: 5% on profits if you sell within 365 days, 7.5% on gains exceeding NPR 2,50,000
For example, if you buy 100 shares at NPR 500 each (total NPR 50,000), your broker commission would be approximately NPR 180 (0.36%).

Key Things to Know as a Beginner

Start small. You do not need lakhs of rupees to begin. You can buy as few as 10 shares of many companies. Some shares trade below NPR 200, meaning you can start with NPR 2,000-5,000.
The market has circuit breakers. Individual stock prices cannot move more than 10% up or down in a single day. If a stock hits its circuit limit, trading in that stock is halted for the remainder of the session.
Dividends are common in Nepal. Many NEPSE companies distribute annual dividends — either as cash dividends (you receive money) or bonus shares (you receive additional free shares). Dividend announcements happen after the company's AGM (Annual General Meeting), typically in the fiscal year-end months of Ashadh and Shrawan.
Do your research. Before buying any stock, look at the company's financial statements — particularly EPS (Earnings Per Share), P/E ratio (Price to Earnings), and book value. These numbers are publicly available through NEPSE's website and financial news portals.

Common Mistakes to Avoid

  • Buying shares based on tips from social media groups without doing your own analysis
  • Investing money you cannot afford to lose or that you need in the short term
  • Ignoring sector diversification — do not put all your money into one sector like banking
  • Panic selling during market corrections — NEPSE has historically recovered from downturns
  • Not keeping records of your purchases for tax purposes

Summary

Getting started with NEPSE investing requires a DMAT account, MeroShare registration, and a broker account. The process takes a few days to set up but gives you access to Nepal's growing capital market. Start with amounts you are comfortable with, learn to read basic financial indicators, and give your investments time to grow.
Nepal's stock market is still maturing compared to larger Asian markets, which means it comes with both higher volatility and significant growth potential for patient investors.