Nepal Stock Exchange was established on 13 January 1994. Anyone can open Demat and Trading account in Nepal Stock Exchange. But first of all you need to understand that What is a Demat and Trading Account? and why do you need one? and Are both things same? These are the questions came in mind when we try to understand the Stock market and after searching for 4-5 mins on Google we got no proper answer. So, here we are on Happybaba.in and we have simplified the language of finance into layman language for the people like you who want to invest but no knowledge about the Investing and Trading.
What Is a Demat account?
Demat account is a type of account that is used for store stock or shares in digital form. It is maintained by the Govt. itself and manages by the different brokers. Before electronic systems, we used a physical share certificate for Shares or Stocks and Bonds. It had major problems with the loss of paper of stocks and various other problems. The capable of account holding share known as Demat account. In Nepal, Demat accounts are maintained by the “Security Board of Nepal”. Now, when you will buy and sell the stock in the primary (IPO) as well as secondary markets (via brokers), you need to have a Demat account. That has made it possible for quicker transactions and ownership transfer.
What Is the Trading account?
A trading account is an investment account where it includes containing securities, cash and other holdings. Most commonly, traders, primary account refers to the trading account. This account has separate from others we invest for a long term buy and hold strategy.
How to open Demat account in Nepal 2020?
Follow these steps to open Demat Account in Nepal:-
- Find a company that provides the service of the Demat and Trading account, for example:- Kriti Capital, NIBL Capital, NMB Capital, Global IME Capital and etc.
- Fill up the form. You will need an attested Nepali citizenship photocopy and a passport size photograph for the form.
- Submit the form with the broker.
Charges of opening Demat account in Nepal 2020?
In Nepal, the Demat or Trading account is very rare because lots of people don’t know about Share Market. 500-1000 Nepalese Rupee required to open Demat and Trading account and the Annual Maintenance Charges are nominal as 300 NR per year. There are various banks in Nepal where you can open a Demat and Trading account in a few hours. We are providing the Top Banks and Brokers down blow.
- Nepal SBI
- Everest Bank Ltd.
- NABIL Investment Bank Ltd.
- Global IME Bank.
NIBL Capital Market Ltd. It is a Public Sector Unit and 49% of the Government of Nepal. They have lots of other facilities as well. It costs about Rs. 150 averages and the opening of an account is free and Annual Maintenance charges are free for 1st Year.
How to deposit your physical share certificates in your Demat account?
- Take your physical share certificates to the place where you opened your Demat account.
- Fill up a dematerialization request form with the correct signature for the Demat account as well as the signature that is in the company.
Submit the form.
After they enter it in the system, you can take the documents to the share registrar of your company and submit it for dematerialization on your own. You can also let your Demat company do the submission job for you. If you do it yourself you might save some time. But even after you submit the shares for dematerialization, you will have now see the shares deposited in your account at around 2 weeks.