What is NEPSE? How to Invest in Nepal Stock Exchange — Beginner Guide 2082

What is NEPSE?

NEPSE (Nepal Stock Exchange Limited) is Nepal's only stock exchange, established in 1994 and headquartered at Singha Durbar Plaza, Kathmandu. It is the marketplace where shares of Nepali companies — banks, hydropower plants, insurance companies, manufacturing firms — are bought and sold. As of 2082 BS, NEPSE has a market capitalization of over रू 4,65,000 crore.

What is the NEPSE index?

The NEPSE Index is a number that represents the overall health of Nepal's stock market. It is calculated from the combined market value of all listed companies, weighted by their size.

• When companies are doing well and demand for shares is high, the index rises
• When investors are selling and confidence is low, the index falls
• The NEPSE Index started at 100 points in 1994; as of 2082, it trades between 2,000–3,000 points

You cannot invest "in the NEPSE index" directly — you buy individual company shares. But the index tells you the overall market direction.

Step 1 — Open a DEMAT account (mandatory first step)

To buy shares on NEPSE, you need a DEMAT (Dematerialized) account. This is a digital account that holds your shares electronically — no physical share certificates.

How to open a DEMAT account in Nepal:

1. Visit any bank, broker, or CDSC depository participant (DP)
2. Fill the DEMAT account opening form
3. Submit: citizenship certificate (copy), recent passport photo, and your bank account details
4. Pay the one-time fee: approximately रू 200–500
5. Receive your BOID (Beneficiary Owner ID) — a 16-digit number that is your permanent DEMAT identity

Documents needed:

• Citizenship certificate (original and photocopy)
• 2 passport-size photos
• Bank account passbook (any Nepal bank)

Most banks (Nabil, NIC Asia, Global IME, etc.) open DEMAT accounts at their branches. Processing takes 1–3 working days.

Step 2 — Register on MeroShare

MeroShare (meroshare.cdsc.com.np) is the official online portal for Nepal share investors. After getting your BOID, register on MeroShare.

MeroShare lets you:

• Apply for IPO (Initial Public Offering) — new shares of companies going public
• Check your DEMAT portfolio
• View transaction history
• Apply for right shares and FPO

Step 3 — Apply for IPO shares

IPO (Initial Public Offering) is when a company sells shares to the public for the first time. In Nepal, every Nepali citizen with a DEMAT account and Mero Share account can apply for any IPO.

How IPO works in Nepal:

1. Company announces IPO with opening and closing dates
2. You apply on MeroShare during the open period
3. If oversubscribed (more applicants than shares), a lottery determines who gets shares
4. If you get shares in the lottery, the money is deducted from your bank account linked on MeroShare
5. Shares appear in your DEMAT account after listing
6. You can then sell them on the open market through a broker

IPO shares in Nepal have historically been profitable because they are often priced below market value. However, this is not guaranteed.

Step 4 — Buy and sell shares through a broker

To trade already-listed shares (secondary market), you need a broker account in addition to your DEMAT account.

• Nepal has 50+ registered brokers
• Open a TMS (Trading Management System) account with your chosen broker
• Fund your account
• Place buy/sell orders through the broker's app or office
• Settlement occurs within T+3 days (trade day + 3 working days)

What types of companies are listed on NEPSE?

How to calculate your share profit

Your actual profit from selling NEPSE shares is less than the price difference, because of broker commission (0.36–0.60%), SEBON fee (0.015%), and 5% capital gains tax on profit.

Use the NEPSE Share Calculator to get the exact number after all deductions.