If you want to invest in shares in Nepal — whether through IPOs or the secondary market — the first thing you need is a DMAT account. Without one, you simply cannot hold shares. This guide walks you through the entire process from start to finish, including choosing a DP, gathering documents, visiting the office, setting up MeroShare, and handling common issues that new investors run into.

What Is a DMAT Account?

DMAT stands for Dematerialized Account. In simple terms, it is an electronic account where your shares are stored. Before dematerialization, shares existed as physical paper certificates. Today, all shares traded on NEPSE are held electronically through CDS and Clearing Limited (CDSC), which is Nepal's central depository.
Think of your DMAT account like a bank account for shares. When you buy shares, they get credited to your DMAT account. When you sell shares, they get debited. Every transaction is tracked digitally, which makes the process faster, safer, and eliminates the risk of forged or lost paper certificates.
Your DMAT account is identified by a unique 16-digit number called a BOID (Beneficiary Owner Identification Number). This number is essential for everything — IPO applications, share transfers, dividend collection, and broker registration.

Why You Need a DMAT Account

You cannot participate in Nepal's stock market without a DMAT account. Specifically, you need it for:
  • Applying for IPOs: When companies issue new shares to the public, you apply through MeroShare using your DMAT account and linked bank account.
  • Trading on the secondary market: To buy or sell shares through a broker on NEPSE, your shares must be held in a DMAT account.
  • Receiving dividends: Cash dividends and bonus shares are distributed to your DMAT-linked bank account and DMAT account respectively.
  • Right share applications: When companies offer right shares to existing shareholders, applications are processed through your DMAT details.

Step 1: Choose a Depository Participant (DP)

A Depository Participant is an institution authorized by CDSC to open and maintain DMAT accounts on behalf of investors. DPs are the intermediaries between you and the central depository.
In Nepal, DPs include:
Commercial Banks: Nepal Bank Limited, Rastriya Banijya Bank, Nabil Bank, Nepal Investment Mega Bank, Himalayan Bank, and most other commercial banks offer DMAT services. If you already have a bank account, opening a DMAT at the same bank is convenient because linking your bank account for ASBA becomes straightforward.
Development Banks and Finance Companies: Some development banks also serve as DPs, though their branch networks are typically smaller.
Stockbrokers: Many licensed stockbrokers also act as DPs. Opening your DMAT through a broker can be convenient if you plan to trade actively, since you can handle broker registration simultaneously.
How to choose: Consider proximity to your location, customer service reputation, whether you already have a bank account there, and fees charged. Most DPs charge similar fees, so convenience is usually the deciding factor.

Step 2: Gather Required Documents

Before visiting the DP office, prepare the following documents:

For Nepali Citizens:

  • Citizenship certificate (original and photocopy of both sides)
  • Recent passport-sized photographs (typically 2 copies, PP size)
  • PAN card (Permanent Account Number issued by IRD — not mandatory for opening DMAT but needed for tax purposes and broker registration)
  • Bank account details (a bank statement or passbook showing your name, account number, and bank branch)
  • Contact information (active mobile number and email address for MeroShare registration)

For Non-Resident Nepalis or Foreign Nationals:

  • Passport (with valid visa for foreign nationals)
  • NRN card (for Non-Resident Nepalis)
  • Additional documentation as required by SEBON guidelines for foreign investment

Important Notes on Documents:

  • Your name on all documents must match exactly. If your citizenship says "Ram Bahadur Thapa" but your bank account says "Ram B. Thapa," you may face issues. Get this corrected before applying.
  • Your mobile number must be active and accessible, as CDSC sends OTP codes to this number for MeroShare access.
  • The email address you provide will be used for MeroShare login, so use one you check regularly.

Step 3: Visit the DP Office and Fill the Form

Go to your chosen DP's office during business hours (typically Sunday to Friday, 10 AM to 3 PM, though hours vary). Here is what happens:
  1. Request a DMAT account opening form: The staff will provide you with CDSC's standard account opening form.
  2. Fill in personal details: Name (as per citizenship), date of birth, father's name, grandfather's name, address (permanent and temporary), occupation, and contact details.
  3. Choose your account type: For individual investors, this is typically a "Individual" account. Joint accounts and institutional accounts have different forms.
  4. Provide bank details for ASBA: You will need to specify your bank account number and branch for the ASBA (Application Supported by Blocked Amount) facility used in IPO applications.
  5. Attach documents: Staple or clip your citizenship photocopy, photographs, and bank statement to the form.
  6. Sign the form: Sign in the designated places. Make sure your signature matches what your bank has on file.
  7. Biometric registration: At some DP offices, you may need to provide a fingerprint or digital signature.
The DP staff will verify your documents and submit the application to CDSC. Processing typically takes 1 to 3 business days, though some DPs can activate accounts within the same day.

Step 4: Receive Your BOID Number

Once CDSC processes your application, you will receive your 16-digit BOID number. The DP office may inform you via SMS, phone call, or you may need to visit again to collect your DMAT certificate.
Your BOID number looks something like: 1301020012345678
The first 8 digits identify the DP, and the last 8 digits identify your specific account. Keep this number safe — you will use it frequently for IPO applications, broker registration, and MeroShare login.

Step 5: Set Up Your MeroShare Account

MeroShare is CDSC's online platform that allows you to:
  • Apply for IPOs
  • View your share portfolio
  • Check transaction history
  • View ASBA application status
  • Renew your DMAT account

Registration Process:

  1. Go to meroshare.cdsc.com.np and click "Register."
  2. Select your DP from the dropdown list. Choose the same DP where you opened your DMAT account.
  3. Enter your BOID number (all 16 digits).
  4. Fill in personal details: Name, date of birth, and other information. These must match what you provided during DMAT opening.
  5. Enter your mobile number and email: An OTP will be sent to verify.
  6. Create a username and password: Choose something memorable. Your username is often your BOID or email, depending on the system.
  7. Set a transaction PIN: This 4-digit PIN is used when applying for IPOs. Do not share it with anyone.
  8. Complete registration: Once verified, your MeroShare account is active.

First Login:

After registration, log in and check that your personal details, bank account, and DMAT information are correct. If anything is wrong, contact your DP immediately for correction.

Step 6: Link Your Bank Account for ASBA

ASBA (Application Supported by Blocked Amount) is the mechanism used for IPO applications in Nepal. When you apply for an IPO, the application amount is not immediately deducted — instead, it is blocked in your bank account. If you are allotted shares, only then is the amount debited.
To use ASBA:
  • Your bank account must be linked to your MeroShare profile.
  • The bank and branch you specified during DMAT opening should appear in MeroShare.
  • If you want to add multiple bank accounts (you can use different banks for different IPO applications), you can request your DP to add additional capital accounts.
Some banks allow you to link your ASBA through their own mobile banking apps as well, making the process even simpler.

Step 7: Register with a Broker (CRN)

While your DMAT account lets you hold shares and apply for IPOs, to buy and sell shares on the secondary market you need to register with a licensed stockbroker. Upon registration, you receive a CRN (Client Registration Number).
There are currently 50 licensed stockbrokers in Nepal. To register:
  1. Choose a broker (you can register with multiple brokers).
  2. Visit the broker's office or register online if they offer it.
  3. Provide your BOID number, citizenship copy, PAN card, and bank details.
  4. Complete KYC (Know Your Customer) form.
  5. Receive your CRN, which links your broker account to your DMAT.
With your CRN active, you can place buy and sell orders through the broker via TMS (Trade Management System) online or by calling/visiting the broker's office.

Fees Involved

Opening and maintaining a DMAT account involves nominal fees:
Fee TypeApproximate Cost
Account opening feeNPR 50 - 100
Annual maintenance feeNPR 100 - 200
Account renewal (if lapsed)NPR 100 - 200
Statement requestUsually free for digital
Account closureNPR 100 - 200
These fees vary slightly between DPs. The annual maintenance fee is typically deducted once a year. If you do not renew, your account goes into a "frozen" state where you cannot transact, though your shares remain safe.

Common Issues and Solutions

Forgot MeroShare Password

Go to the MeroShare login page and click "Forgot Password." An OTP will be sent to your registered mobile number. If your mobile number has changed, you must visit your DP office with your citizenship to update it before resetting the password.

BOID Number Mismatch

If your IPO application is rejected due to BOID mismatch, it usually means the name or details in your DMAT do not match your bank account information. Visit your DP to verify and correct the discrepancy.

MeroShare Shows Zero Balance Despite Owning Shares

This can happen if your account was recently opened and shares from a previous paper certificate have not been dematerialized, or if there is a DP selection error during login. Make sure you select the correct DP from the dropdown when logging into MeroShare.

Account Frozen Due to Non-Renewal

If your annual fee is unpaid, CDSC will freeze your DMAT account. You can still see your holdings, but cannot transact. Visit your DP, pay the overdue fees, and they will reactivate your account within a few days.

Cannot Apply for IPO

Common reasons include: bank account not linked for ASBA, insufficient balance in linked bank account, DMAT account frozen, or KYC not completed at the bank. Resolve the specific issue with your DP or bank.

Name Spelling Mismatch Between Documents

This is one of the most common problems. If your citizenship, bank account, and DMAT all have slightly different name spellings, IPO applications get rejected automatically. Get everything corrected to match your citizenship exactly.

Tips for New Investors

  1. Open your DMAT at a bank where you already have an account — it simplifies ASBA linking and document verification.
  2. Save your BOID and MeroShare credentials securely — you will need them regularly.
  3. Keep your registered mobile number active — OTPs for MeroShare and IPO applications go to this number.
  4. Renew your DMAT annually — set a reminder so your account does not get frozen.
  5. Update your details promptly — if you change your phone number, address, or bank account, inform your DP immediately.
  6. Register with a broker early — even if you only plan to apply for IPOs initially, having a broker account ready means you can start trading whenever you choose.

Summary

Opening a DMAT account in Nepal is a straightforward process that takes 1-3 days. The steps are: choose a DP, gather your documents, fill the form at the DP office, receive your BOID, set up MeroShare, link your bank for ASBA, and optionally register with a broker for secondary market trading. The total cost is minimal — under NPR 500 — and once set up, your account serves as the foundation for all stock market activities in Nepal. Whether you want to apply for IPOs, trade on NEPSE, or simply hold shares long-term, your DMAT account is where it all begins.