This week’s NEPSE index closed at 1,866.79, a loss of 41.76 points (2.19%). Last week, the index closed at 1,908.55, down 0.34% from the previous week.
This week, the index reached a high of 1,928.66 and a low of 1856.69, resulting in 71.97 points of volatility. In the previous week, the index experienced 71.44 points of volatility.
One company applied for a stock dealer license in the previous seven months, while 45 companies applied for stock broker licenses. Nonetheless, all procedures had been halted as a result of the Supreme Court’s directive. Seven months later, the broker license has been suspended, resulting in the freezing of approximately Rs. 12 Arba in capital.
SEBON’s revised Securities Market Operation Regulations 2064 and Securities Dealers Regulations 2064 begin the process of awarding new licenses. On Ashwin 2, 2079, the Securities Board issued a notice with a 30-day deadline to carry it out. As a result, 45 companies applied for stock broker licenses, while only one company applied for stock dealer license. Throughout the seven months
Have you decided to invest in the stock market? Consider these 7 stock market investing tips when making your investments.
1. Have a solid comprehension of basic economic principals.
Before you get started, you should understand basic principals and laws of economics. The stock market closely follows the law of supply and demand. For example, when there is a large demand for the stock of a certain company, the cost of its stock will increase along with the demand. However, if there are more stock available for sale than there are buyers, the unit price of that company stock will decrease.
2. Learn about prospective companies you want to invest in.
Do your homework before you invest in prospective companies. Read the company annual report and find out about their products, operations, services and basic business track record. This information gives you an idea of how stable the company is and whether they can deliver on their promise to offer profits to investors.
3. Select companies with staying power.
There are so many companies that exist in today’s stock market, selecting becomes a major decision for beginning investors. Relatively stable companies and business are owned by the government, unless there is a political revolution or crisis going on. Gasoline companies and telecommunications companies are usually profitable and stable because there is a constant demand for their services and products. While IT companies are rapidly growing in today’s stock market, there are so many of them it may be a challenge to check their profiles to exercise reasonable care before investing. Before putting your money into an IT company, verify their track record and make sure they are stable and profitable for a minimum of 10 years.
4. Keep an eye on the news.
Guesswork is completely ineffective when it comes to investing in the stock market. Good intuition and solid decision-making come from learning about global and local news both politically and economically. When you watch the news, make sure to keep track of the industry your company is in. Even stable companies may go bankrupt or have a major blow that will bring them down.
5. Don’t put all your eggs in one basket.
Avoid investing in just one company and spread out your stock investments to several businesses. When you have stock concentrated in just one company, you have a greater chance of losing it all. When you spread out your investments over several companies, those earning profits can cushion the ones that not not as profitable.
6. Stockbrokers aren’t the final word.
A stock broker is actually gambling with your money so you need to do your own homework. Dishonest brokers can take advantage of investors who do not fully comprehend how the stock market works.
7. Greed is your enemy.
While everyone is eager to make profits in the stock market, an investor loses their sense of reason when they are fueled by greed. A money hungry investor may forget to check on economic rumors and spontaneously decide to sell or buy with the thought of making major profits and then lose it all.
Putting your money in the stock market can of course be risky, but the above stock market investing tips should help point you in the right direction.
Alright, so you’ve decided you want to take a shot at buying and trading stocks. The only problem is, you really don’t know how. Where should you begin? And do you even know what a stock is and the significance of stock for companies?
This article will serve as a dummies guide for trading and buying stock.
A stock is actually partial ownership of a company. Some companies consider stocks as certificates so the more stock a person owns of the company, the larger portion of the company they own. Along with owning a bigger part of the company, they also have greater influence in running the company. This influence is referred to as equity investment.
There are other important terms you should become familiar with before getting into the stock market. Get to know about leverage, price-earnings ratio, earnings per share, margins and options before you dive in and invest your hard-earned money.
Next you need to figure out where and how to purchase those stocks. Basically, there is only one way to buy shares and stocks. Through your stock broker.
Online exchanges let investors have access to stocks from all around the globe. Without the need for a broker, investors can purchase and sell stocks online. Some banks also give you the ability to set up your own stock portfolio. You can use the money you have invested with these banks to purchase and sell stocks online right away.
Brokers render brokerage services and they are the middlemen who do the work on your behalf. Brokers give advice, research the current stock market and buy and sell stocks in accordance with the requests of their clients. From buying and selling these stocks, the brokers earn a commission.
When you decide on how you prefer to purchase and sell stocks, you need to open an account. Exchanges will allow you to monitor and control your individual stock portfolio yourself. If you decide to enter into the stock trade with a bank, discuss the specifics of setting up your own account with the bank you choose. For conducting trades through a broker, you need to find a reputable broker to deal with and then ask them to open and manage your account.
Once you set up an account successfully, start studying the stock market to plan your strategy. Do you want to be conservative when making investments? Do you like to aggressively invest? How many investing years do you have? Are you a day trader or will you be investing on a long term basis?
When you determine your personal plan, do your research on the current stocks offered in the market. If you have a broker, it becomes easier because they do much of the research for you. However, it is still best to study the market on your own.
Remember, the stock market is a volatile place so be ready for explosive activity when trading and buying stocks. Like life, there are many ups and downs before you reach your goals.
How does the stock market work? In a nutshell, the stock market is a market place for business people. Goods are sold to the public in a public market. However, in the stock market, the public is sold share. Shares are the form in which company stock is sold. When a person purchases more shares in a company, they have a higher ownership in that company.
In the stock market, there is the primary market and the secondary market. In the primary market, companies sell shares to investors to raise financing for their operating expenses. In the secondary market, investors buy and sell shares in companies to other investors. Constantly changing market conditions are the basis of those buy and sell decisions.
A stock market operates much like an auction house, with a systematic way of buying and selling. The system in the stock market involves a great deal of bustling activity. Often there are people running around frantically, shouting and gesturing at one another.
The purchase and sale of stock starts at various places. A broker is contacted if a person wants to buy stocks in a certain company. The broker will take the investor’s money to the stock exchange to coordinate with a floor broker.
In most cases, the floor broker works for the company selling stock. Right on the stock exchange floor, brokers buy the desired stock for the investor. Once the deal is made, it is communicated to a broker and the investor then becomes a stockholder of that particular company.
Investors may decide to sell their stock. Usually investors want to sell their stock when the price per share increases so they can realize a profit on their investment. For example, a person may purchase 100 shares at the price of $25 per share. When the price increases to $35 per share, the person can sell the 100 shares and make a profit of $1,000.
The driving force behind the stock market is the basic economic principal of supply and demand. The number of stocks open to the public is the supply. The number of shares that investors what to purchase affects the demand of the stock in a certain company.
The constant change in the cost of stock is a result of conditions in other markets. For example, if people feel that the economy is growing they are apt to purchase more stocks. However, when the economy is in a decline, the majority of investors tend to sell off their stocks. On the flip side, some investors use this time to buy because the stock prices are usually at a discount.
There are quite a few business people who make long term investments in the stock market. In some situations, stocks go down in value and a stockholder loses money. There is no guaranteed profit when investing in the stock market. Thus, when a person is flexible and able to handle the constant changes of the stock exchange they are more likely to experience a profit.
So this is how the stock market works. In the end, patience, education and experience usually equals greater long term success.
One of the riskiest ventures is investing your money in the stock market. But along with the extreme risk involved, is also has the potential to make you a lot of money. In fact, investing in the stock market can turn out to be one of the most profitable business decisions you’ll ever make if done right.
With so many variables to consider, it is expected that you may have hesitancy to risk your hard-earned cash on a speculative venture in the stock market. The best course of action is to hire a reputable stockbroker to handle your stocks in the beginning. A trained stockbroker can give you dependable stock tips and solid professional advice.
Another good idea is to discuss stocks with an associate or friend with a bit of experience investing in the market themselves. Talking with educated friends and acquaintances can be a good way to get stock advice and knowledge for free.
A well-known stock move is investing in variable annuities using the premium of your insurance. Variable annuities are actually insurance contracts that allow you to invest your premium in mutual fund type investments. While this may seem like a good idea, when you review it more closely, it might be a poor investment.
The following are 4 potential problems with annuities:
Another thing to keep in mind is that timing is a key element to successful stock investing. There are specific times that are good to invest and other times that are poor. During times of hardship or national duress, the prices of stocks may be driven down to a discounted rate, but there is no reassurance that such stocks will recover to realize a significant profit. Educating yourself on the company is key in this situation.
The bottom line with regards to investing in the stock market is diversification. The best decision is to diversify where and when you invest your money so you can always realize some type of profit to offset potential losses.
And you should always hire a reputable finance professional to help guide you through the stock market.
In days past, stock market information was limited and often buyers depended on stockbrokers to try to get the facts about investments. Today there are a variety of stock investment tools to assist modern investors and maximize the amount of information they can find about potential investments and trading activities.
The widespread use of the Internet puts a wealth of information at your fingertips right away. The Internet has facts about many publicly listed companies in the United States. Certain websites provide free research information, which may be rather general in nature but still useful to beginners. Other companies publish in-depth research reports outlining the activities of listed companies. These detailed reports may only be offered through a subscription, which may be an expensive choice for retail based investors. Based on the quality of the research provided about the company, such detailed reports may wind up costing hundreds or even thousands of dollars.
For simple background facts, stock investors can peruse news articles, analyst reviews and research reports intended to supply fundamental company information. This basic information can come from analyzing previously published financial reports or catching up on current news events regarding the company’s activities. This fundamental research can be a place to start to obtain more information so investors can adequately analyze the data to make educated investment decisions.
Investors can also take advantage of a variety of stock investment tools that offer management or raw data including current stock quotes, index performances or historical price data. Such tools may be purchased from a software company and then installed in computers. These tools assist in gathering, processing and analyzing raw data so the information is more useful to the investor.
For example, an investor can take raw data of the historical closing prices of certain companies and run it through investment software to find out additional information such as the volume of stocks traded on a particular company for a said period of time or the historical price trend of one company compared to an index of other companies. These stock investment tools generate reports that assist investors in developing more effective trading strategies from the raw data they originally had.
Certain stock investment tools purchased from various software companies may cost hundreds of dollars. This type of pricey investment may not be practical for small scale investors looking to make a profit right away. Individual or beginning investors can take advantage of analysis tools on the Internet made available from stock market companies for free to their clients. These tools are also made available for free to online investment clients to help them develop their trading strategies to try to achieve profits.
Efficient stock investment tools, research products and information are readily accessible on the Internet for your convenience. However, it still requires data gathering, interpretation of analysis and careful planning to ensure successful trading. By using some online tools and careful analysis of the data, investors can develop viable trades for long term investment growth.
Everyone is looking for a quick and easy way to riches and happiness. It seems to be human nature to constantly search for a hidden key or some esoteric bit of knowledge that suddenly leads to the end of the rainbow or a winning lottery ticket.
While some people do buy winning tickets or a common stock that quadruples or more in a year, it is extremely unlikely, since relying upon luck is an investment strategy that only the foolish or most desperate would choose to follow. In our quest for success, we often overlook the most powerful tools available to us: time and the magic of compounding growth. Investing regularly, avoiding unnecessary financial risk, and letting your money work for you over a period of years and decades is a certain way to amass significant assets.
Here are several tips that should be followed by beginning investors.
Everyone is looking for a quick and easy way to riches and happiness. It seems to be human nature to constantly search for a hidden key or some esoteric bit of knowledge that suddenly leads to the end of the rainbow or a winning lottery ticket.
While some people do buy winning tickets or a common stock that quadruples or more in a year, it is extremely unlikely, since relying upon luck is an investment strategy that only the foolish or most desperate would choose to follow. In our quest for success, we often overlook the most powerful tools available to us: time and the magic of compounding growth. Investing regularly, avoiding unnecessary financial risk, and letting your money work for you over a period of years and decades is a certain way to amass significant assets.
Here are several tips that should be followed by beginning investors.
1. Set Long-Term Goals
Why are you considering investing in the stock market? Will you need your cash back in six months, a year, five years or longer? Are you saving for retirement, for future university expenses, to purchase a home, or to build an estate to leave to your beneficiaries?
Before investing, you should know your purpose and the likely time in the future you may have need of the funds. If you are likely to need your investment returned within a few months, consider another investment; the stock market with its volatility provides no certainty that all of your capital will be available when you need it.
By knowing how much capital you will need and the future point in time when you will need it, you can calculate how much you should invest and what kind of return on your investment will be needed to produce the desired result.
Remember that the growth of your portfolio depends upon three interdependent factors:
Ideally, you should start saving as soon as possible, save as much as you can, and receive the highest return possible consistent with your risk philosophy.
2. Understand Your Risk Tolerance
Risk tolerance is a psychological trait that is genetically based but positively influenced by education, income, and wealth (as these increase, risk tolerance appears to increase slightly) and negatively by age (as one gets older, risk tolerance decreases). Your risk tolerance is how you feel about risk and the degree of anxiety you feel when risk is present. In psychological terms, risk tolerance is defined as “the extent to which a person chooses to risk experiencing a less favourable outcome in the pursuit of a more favourable outcome.” In other words, would you risk NPR 1000 to win NPR 10,000? Or NPR 10,000 to win NPR 10,000? All humans vary in their risk tolerance, and there is no “right” balance.
Risk tolerance is also affected by one’s perception of risk. For example, flying in an aeroplane or riding in a car would have been perceived as very risky in the early 1900s, but less so today as flight and automobile travel are common occurrences. Conversely, most people today would feel that riding a horse might be dangerous with a good chance of falling or being bucked off because few people are around horses.
The idea of perception is important, especially in investing. As you gain more knowledge about investments – for example, how stocks are bought and sold, how much volatility (price change) is usually present, and the difficulty or ease of liquidating an investment – you are likely to consider stock investments to have less risk than you thought before making your first purchase. As a consequence, your anxiety when investing is less intense, even though your risk tolerance remains unchanged because your perception of the risk has evolved.
By understanding your risk tolerance, you can avoid those investments which are likely to make you anxious. Generally speaking, you should never own an asset which keeps you from sleeping in the night. Anxiety stimulates fear which triggers emotional responses (rather than logical responses) to the stressor. During periods of financial uncertainty, the investor who can retain a cool head and follows an analytical decision process invariably comes out ahead.
3. Control Your Emotions
The biggest obstacle to stock market profits is an inability to control one’s emotions and make logical decisions. In the short-term, the prices of companies reflect the combined emotions of the entire investment community. When a majority of investors are worried about a company, its stock price is likely to decline; when a majority feel positive about the company’s future, its stock price tends to rise.
A person who feels negative about the market is called a “bear,” while their positive counterpart is called a “bull.” During market hours, the constant battle between the bulls and the bears is reflected in the constantly changing price of securities. These short-term movements are driven by rumours, speculations, and hopes – emotions – rather than logic and systematic analysis of the company’s assets, management, and prospects.
Stock prices moving contrary to our expectations create tension and insecurity. Should I sell my position and avoid a loss? Should I keep the stock, hoping that the price will rebound? Should I buy more?
Even when the stock price has performed as expected, there are questions: Should I take a profit now before the price falls? Should I keep my position since the price is likely to go higher? Thoughts like these will flood your mind, especially if you constantly watch the price of a security, eventually building to a point that you will take action. Since emotions are the primary driver of your action, it will probably be wrong.
When you buy a stock, you should have a good reason for doing so and an expectation of what the price will do if the reason is valid. At the same time, you should establish the point at which you will liquidate your holdings, especially if your reason is proven invalid or if the stock doesn’t react as expected when your expectation has been met. In other words, have an exit strategy before you buy the security and execute that strategy unemotionally.
4. Handle Basics First
Before making your first investment, take the time to learn the basics about the stock market and the individual securities composing the market. There is an old adage: It is not a stock market, but a market of stocks. Your focus will be upon individual securities, rather than the market as a whole. There are few times when every stock moves in the same direction; even when the averages fall by 100 points or more, the securities of some companies will go higher in price.
The areas with which you should be familiar before making your first purchase include:
Knowledge and risk tolerance are linked. As Warren Buffett said, “Risk comes from not knowing what you are doing.”
5. Diversify Your Investments
Experienced investors such as Buffett eschew stock diversification in the confidence that they have performed all of the necessary research to identify and quantify their risk. They are also comfortable that they can identify any potential perils that will endanger their position, and will be able to liquidate their investments before taking a catastrophic loss.
The popular way to manage risk is to diversify your exposure. Prudent investors own stocks of different companies in different industries, sometimes in different countries, with the expectation that a single bad event will not affect all of their holdings or will otherwise affect them to different degrees.
Imagine owning stocks in five different companies, each of which you expect to continually grow profits. Unfortunately, cirplusstances change. At the end of the year, you might have two companies (A & B) that have performed well so their stocks are up 25% each. The stock of two other companies (C & D) in a different industry are up 10% each, while the fifth company’s (E) assets were liquidated to pay off a massive lawsuit.
Diversification allows you to recover from the loss of your total investment (20% of your portfolio) by gains of 10% in the two best companies (25% x 40%) and 4% in the remaining two companies (10% x 40%). Even though your overall portfolio value dropped by 6% (20% loss minus 14% gain), it is considerably better than having been invested solely in company E.
6. Avoid Leverage/Margin Loan
Leverage/Margin loan simply means the use of borrowed money to execute your stock market strategy. In a margin account, banks and brokerage firms can loan you money to buy stocks, usually 50% of the purchase value. In other words, if you wanted to buy 1000 shares of a stock trading at NPR 100 for a total cost of NPR 100,000, your brokerage firm could loan you NPR 50,000 to complete the purchase.
The use of borrowed money “levers” or exaggerates the result of price movement. Suppose the stock moves to NPR 200 a share and you sell it. If you had used your own money exclusively, your return would be 100% on your investment [(200,000 -100,000)/100,000]. If you had borrowed NPR 50,000 to buy the stock and sold at NPR 200 per share, your return would be 300 % [(200,000-50,000)/$50,000] after repaying the NPR 50,000 loan and excluding the cost of interest paid to the broker (which is usually 16% and over).
It sounds great when the stock moves up, but consider the other side. Suppose the stock fell to NPR 50 per share rather than doubling to NPR 200, your loss would be 100% of your initial investment, plus the cost of interest to the broker [(50,000-50,000)/50,000].
A margin is a tool that can go extremely bad in a stock market like Bangladesh.
Final Thoughts
Stock investments historically have enjoyed a return significantly above other types of investments while also proving easy liquidity, total visibility, and active regulation to ensure a level playing field for all. Investing in the stock market is a great opportunity to build large asset value for those who are willing to be consistent savers, make the necessary investment in time and energy to gain experience, appropriately manage their risk, and are patient, allowing the magic of compounding to work for them. The younger you begin your investing avocation, the greater the final results – just remember to walk before you begin to run.
Everyone wants a high return on their investment in stock market trading. First let’s consider the basics and the ways to earn the most on your investments.
Return on Investment
Usually referred to as ROI, the Return on Investment in stock market investing is the profit earned from selling a security or other asset divided by the amount of the original investment. With stocks, your ROI is expressed as an APR (annual percentage rate).
Your ROI is all the income you make on the stock, which also includes profit earned from selling the stock. When the sales price plus any other income is higher than the price you purchased the stock for, your ROI is positive.
When the sale price plus any other income is lower than the price you bought the stock for, you have a negative ROI (which is obviously what you want to avoid). In fact, as a trader in the stock market, your goal is a high ROI, not just a positive one. To achieve a substantial ROI, consider the following methods to boost your current stock investing efforts.
Know What You Are Purchasing
To ensure a high ROI in stock market investing, garner as much information as you can about the company you want to invest your money in. A bit of basic analysis to find out if the stock is worth the asking price can go a long way. Rather than gambling, you can also ask other people to do this research for you if you don’t have the time to do it yourself. Reliable research resources include the websites of major brokerage firms, mutual fund companies and finance publications. There are also paid newsletter that offer this information.
A Bull Market Is Not The Same As Smart Investing
When you earn a high ROI in stock market investing, there are many reasons for it. One of the possible reasons is your wise investment strategy. Another reason can simply be the good fortune to be in the right place at the right time so you wind up making money with minimal effort. We may feel smarter when the market is soaring so we get tempted to take on riskier positions and trade more frequently, which may not be the wisest decision.
Deactivate Active Trading
You may feel tempted to trade frequently when you are gaining. With online stock trading, investment is a mouse click away which can make you even more impulsive. Remember that it is difficult to make money by beating the stock market consistently. In stock market trading, it is better to have a buy and hold strategy to ensure a high ROI.
Take Note of The Tax Man
Pay attention to tax ramifications when trading stocks. Frequent trading can become extremely costly, especially when major income taxes are triggered by profits. By buying and holding for a period of at least one year, you would qualify for a lower capital gains rate. Your financial advisor should be able to consult with you on this.
A share is essentially a fraction of a company’s ownership. Purchasing or selling shares entails acquiring or disposing of a portion of the company’s ownership. The stock market, also known as the share market, is a place where you can buy and sell stocks. In order to raise money, public corporations usually sell shares to the public, but the stock market often trades other instruments such as debentures, bonds, and mutual funds.
Dividends are a way for you to get a piece of those companies’ earnings as a shareholder. While share trading is an exciting way to earn money both actively and passively, it is also risky since investors can have to bear the loss if the company fails. As a result, as a novice, it is important that you gain a thorough understanding of the market before investing your money in stocks.
Here is a brief introduction of how you can participate in the game of stock trading.
Opening a dematerialized (DEMAT) account at one of the Depositary Participant (DP) licensed by the Central Depository System and Clearing Limited (CDSC) is a prerequisite to participate in both primary and secondary market. Most commercial banks, merchant bankers and stockbrokers provide such services. If you already own some stocks in your name, then you can give your DP to dematerialize your physical share certificates into dematerialized shares. The DEMAT account is similar to a bank account which debits and credits the shares you sell or purchase. Most DP’s also provide clients with facilities to check their DEMAT account status online as well.
To get started in the stock market, it is essential to first understand how the market functions. Securities Board of Nepal (www.sebon.gov.np); the sole regulator of the capital market is a useful source for primary information. Its website provides information on various securities laws, investor education, and upcoming public issues amongst others. Similarly, the Nepal Stock Exchange (www.nepalstock.com) the sole secondary market; and its mobile-based application is a great source to get hands-on information. There are many other popular websites that provide constant updates about the capital market such as; Share Sansar and Mero Lagani. Furthermore daily national newspapers, websites of merchant bankers and credit rating agency – icranepal.com – also provide good information.
One of the best opportunities to participate in the capital market is to apply for primary offers in the primary market such as; Initial Public Offering (IPO) or Further Public Offering (FPO). Most companies offer primary issues to the general public at face value of NPR 100 per stock, or at a premium based on their valuations. The risk is lower when you purchase in the primary market as you get an opportunity to buy shares at a lower cost as compared to purchasing those shares in the secondary market once they are listed. Also, look out for opportunities to participate in the primary offering of mutual fund schemes which can be a beginning point.
News about primary issues generally comes out in national newspapers and are widely announced on other media platforms. Once you know the primary issues are out, you can read their prospectus to see their detail information such as; past and projected performance, & management amongst others. You can also look at their credit rating provided by a licensed credit rating agency before making the decision to invest.
All the stocks offered via the primary market are listed in the secondary market i.e. Nepal Stock Exchange (NEPSE); currently, there are 231 companies listed in the stock exchange. The secondary market provides the platform to sell the shares you hold or purchase new shares from the market. The share price of these listed companies and the value of NEPSE Index changes every day based on total demand and supply of shares in the market.
If you wish to get involved in the secondary market, you will need to open a transaction account at a stock broker’s office. There are currently 50 stockbrokers licensed by NEPSE while there are a few stock broker offices outside Kathmandu. Once you open an account with a stockbroker, they will provide you with a unique ID code via which all the transactions in your name will be executed.
To make a purchase or sale order you will simply have to call your stock brokers or visit their office to place an order, make sure you have the shares in your DMAT account before you place a sell order to your stockbroker. The stockbroker charges some commission as a brokerage fee for each transaction while you have also have to pay a capital gain tax of 5% if applicable while making sales.
If you are still confused and less confident about entering the market or you do not have time, energy and resources, do not worry as there are a number of professional licensed Portfolio Management Companies providing you with a full range of products and services under Portfolio Management Services (PMS). Based on your investment goals and expectations, these portfolio managers develop portfolios matching your risk appetite and invests in the capital markets on your behalf. The portfolio manager charges minimal annual and performance fees while these services offer you the opportunity to grasp the benefits of the capital markets. Moreover, you can also handover your existing portfolio to these portfolio managers for restructuring and further management.
All in all, as the stock market is constantly evolving and getting technical, retail investors are highly advised to seek professional advice and avoid making investments on herd mentality – invest wisely!
Nepal Stock Exchange (NEPSE) is the country’s sole stock exchange. It is located in Kathmandu, Nepal, at Singha Durbar Plaza.
In 2033 BS, the government established a security purchasing and trading center in Nepal. In 2050 BS, the same location became the Nepal Stock Exchange Limited (NEPSE).
On January 13, 1994, the Nepal Stock Exchange (NEPSE) inaugurated its trading floor (29 Poush, 2050). It is Nepal’s sole stock exchange. As of May 13, 2020, the total market capitalisation of the companies listed on NEPSE is around Rs 1.54 trillion.
The primary function of the stock exchange is to facilitate the trading of listed securities. NEPSE has been trying to register publicly issued securities in the secondary market so that they can be traded easily. This is referred to as listing.
The Nepal Stock Exchange Limited (NEPSE) is a specialized government-owned entity governed by the Companies Act. It does business in compliance with the Securities Act. Its principal goal is to assist to the country’s economic development through capital formation and mobilization, as well as to stimulate investor interest by establishing a secondary market for the trading of securities issued by the Government of Nepal and organizations.
Nepse has been a prominent regulatory organization in terms of market operations, listed firms, and securities dealers, in keeping with its goal of trading shares, bonds, mutual fund units, and other securities through member brokers.
At the moment, the Nepal Stock Exchange offers general investors the ability to purchase and sell securities through 50 member brokers and 41 Remote Work Stations (RWS) in key cities both inside and outside the Kathmandu Valley.
The brokerage firm and its branches are spread across 21 different cities in Nepal.
Nepal’s capital market is in its early phases of development due to the size of the market, kind of company, financial instruments to be exchanged, laws and regulations, technology utilized for business, other physical infrastructure, manpower, and so on.
Similarly, Nepse is a founder member and current Executive Board Member of the South Asian Federation of Exchanges. It is also an Affiliate Member of the World Federation of Exchanges, with plans to become a full member soon.
The Government of Nepal promotes the Nepal Stock Exchange (NEPSE). The Nepalese government owns 58.65 percent of NEPSE.
The significant shareholders of the Nepal Stock Exchange (NEPSE) are shown in the table below. It also includes a proportion of ownership.
| S.No | Shareholders | Share Ownership (%) |
| 1 | Government of Nepal | 58.65 |
| 2 | Nepal Rastra Bank | 34.6 |
| 3 | Rastriya Banijya Bank | 6.12 |
| 4 | Members(Brokers) | 0.62 |
According to the Securities Act of 2006, the Board of Directors (BOD) of the Nepal Stock Exchange (NEPSE) is made up of members from various sectors. The BOD now consists of two members from the Nepal Government, one from Nepal Rastra Bank, and one from Rastriya Banijya Bank. Furthermore, the BOD will propose one member as a capital market expert. NEPSE’s General Manager will serve as a director on the BOD.
NEPSE index is the market value weighted index. This index shows the aggregate growth in capitalization of companies listed in Nepal Stock Exchange.
Nepse Index reached its all-time high of 1881.45 on July 27, 2016.
Index calculated from the market capitalization of companies classified under group “A” is called sensitive index.
The sub-indices in Nepse include:
1. Banking
2. Development bank
3. Finance
4. Microfinace
5. Manufacturing And Processing
6. Hydro Power
7. Non Life Insurance
8. Life Insurance
9. Hotels
10. Mutual Fund
11. Other
Provides a market platform for buying and selling of secondary shares, debentures and bonds.
Develops and expands the secondary market in the capital market by supporting the policy and guidelines of the Government of Nepal.
Regulates listed companies, brokers and investors.
Spreads public awareness about capital markets.
Regulates and monitors the listed public limited companies.
Take membership with national and international capital market organizations.
List new companies to trade on the stock exchange, as well as OTC companies that are not listed or disbanded.
Development and expansion of the capital market by increase the number of institutions involved in the market.
Runs a clean, transparent, credible, fair market and works in the interest of investors.
Sebon has granted license to 11 new stock brokers. The list can be found here.
| # | No | Broker Name | Address | Phone |
| 1 | 1 | Kumari Securities Pvt. Limited | Dillibazar, Kathmandu | 01-4418036, 01-423689 |
| 2 | 1_RWS | Kumari Securities Pvt. Limited | New Road, Pokhara | 061-537511 |
| 3 | 3 | Arun Securities Pvt. Limited | Putalisadak, Kathmandu | 01-4239567 |
| 4 | 4 | Stock Broker Opal Securities Investment Pvt. Limited | Uttardhoka, Kathmandu | 01-4420313, 01-4420314, +9779851082252 |
| 5 | 5 | Market Securities Exchange Company Pvt. Limited | Kichha Pokhari, Kathmandu | 01-4248973, 01-4223257 |
| 6 | 6 | Agrawal Securities Pvt. Limited | Dillibazar, Kathmandu | 01-4424406, 01-4424657 |
| 7 | 6_RWS | Agrawal Securities Pvt.Limited | Main Road, Biratnagar | 021-531667 |
| 8 | 6_RWS | Agrawal Securities Pvt.Limited | Kadam Chowk, Janakpur | 041-420420 |
| 9 | 7 | J.F. Securities Company Pvt. Limited | Dharma path, Kathmandu | 01-4256099, 01-4248202 |
| 10 | 8 | Ashutosh Brokerage & Securities Pvt. Limited | Behind Nepal SBI Bank, Battisputali, Kathmandu | 01-4490232, 01-4490233 |
| 11 | 8_RWS | Ashutosh Brokerage & Securities Pvt. Limited | United Insurance Building, Itahari | 9813284370 |
| 12 | 10 | Pragyan Securities Pvt. Limited | Kamaladi, Kathmandu | 01-4413392 |
| 13 | 10_RWS | Pragyan Securities Pvt. Limited | College Road, Biratnagar | 021-527283 |
| 14 | 11 | Malla & Malla Stock Broking Company Pvt. Limited | Lalupate Marg, Hattisar, Kathmandu, Nepal | 01-4432008, 01-4414088 |
| 15 | 13 | Thrive Brokerage House Pvt. Limited | Naxal, Kathmandu | 01-4419051, 01-4416018 |
| 16 | 13_RWS | Thrive Brokerage House Pvt. Limited * | Gairipatan, Pokhara | 061-522935 |
| 17 | 14 | Nepal Stock House Pvt. Limited | Kalikasthan, Kathmandu | 01-4429621, 01-4429631 |
| 18 | 14_RWS | Nepal Stock House Pvt. Limited | Gairapatan, Pokhara | 061-534694 |
| 19 | 16 | Primo Securities Pvt. Limited | 49/8, Shanker Dev Marg, Putalisadak, Kathmandu. | 01-4168175, 01-4168164 |
| 20 | 16_RWS | Primo Securities Pvt. Limited | Adarsha Nagar, Birgunj | 051-529683 |
| 21 | 17 | ABC Securities Pvt. Limited | Indrachowk, Kathmandu | 01-4230787, 01-4266507 |
| 22 | 17_RWS | ABC Securities Pvt. Limited | Prithvi Marg, Dharan | 025-524083 |
| 23 | 18 | Sagarmatha Securities Pvt. Limited | Dillibazar, Kathmandu | 01-4439315, 01-4433316 |
| 24 | 19 | Nepal Investment & Securities Trading Pvt. Limited | Purano Baneshwor Kathmandu, Nepa | 01- 4495450, 01-4480072 |
| 25 | 19_RWS | Nepal Investment & Securities Trading Pvt. Limited | Main Road, Biratnagar | 021-440127 |
| 26 | 20 | Sipla Securities Pvt. Limited | NewRoad, Kathmandu | 01-4255782, 4255078 |
| 27 | 21 | Midas Stock Broking Company Pvt. Limited | Putalisadak, Kathmandu | 01-4240089, 01-4240115 |
| 28 | 21_RWS | Midas Stock Broking Company Pvt. Limited | Chauraha, Butwal | 071-438332, 071-438336 |
| 29 | 22 | Siprabi Securities Pvt. Limited | Pulchowk, Lalitpur | 01-5530701 |
| 30 | 22_RWS | Siprabi Securities Pvt. Limited | Resham Kothi, Birgunj | 051-523818 |
| 31 | 25 | Sweta Securities Pvt. Limited | Putalisadak, Kathmandu | 01-4223914, 01-4223778 |
| 32 | 25_RWS | Sweta Securities Pvt. Limited | Ghantaghar, Birgunj | |
| 33 | 26 | Asian Securities Pvt. Limited | Putalisadak-32, Kathmandu, Near NMB Bank Ltd | 01-4424351, 01-4431395 |
| 34 | 26_RWS | Asian Securities Pvt. Limited | Near to Global IME Bank, Butwal | 071-547279 |
| 35 | 28 | Shree Krishna Securities Limited | Dillibazar, Kathmandu | 01-4441226, 01-4441225, 01-4441228 |
| 36 | 28_RWS | Shree Krishna Securities Limited | Municipality Office, Biratnagar | 021521699 |
| 37 | 29 | Trishul Securities And Investment Limited | Putalisadak, Kathmandu | 01-4440709 |
| 38 | 29_RWS | Trishul Securities And Investment Limited | Newroad, Pokhara | 061-523901 |
| 39 | 32 | Premier Securites Company Limited | Putalisadak,Kathmandu | 01-4432705, 01-4432700, 01-4432704 |
| 40 | 32_RWS | Premier Securites Company Limited | New Road, Pokhara | 061-534201 |
| 41 | 33 | Dakshinkali Investment Securities Pvt.Limited | Apex Building, Kamaladi, Kathmandu | 01-4168640, 01-4168641 |
| 42 | 33_RWS | Dakshinkali Investment Securities Pvt.Limited | Palpa Road, Butwal | 9851095629, 071547089 |
| 43 | 34 | Vision Securities Pvt.Limited | Marpha House, Anamnagar, Kathmandu | 01-4770425/452, 01-4770408 |
| 44 | 34_RWS | Vision Securities Pvt.Limited | Narayangarh, Bhairawa | 071-522324 |
| 45 | 34_RWS | Vision Securities Pvt.Limited | Banepa Chowk, Banepa | 011-662802 |
| 46 | 35 | Kohinoor Investment and Securities Pvt.Ltd | Hattisar Sadak, Kathmandu | 01-4442857, 01-4442858 |
| 47 | 35_RWS | Kohinoor Investment and Securities Pvt.Ltd | New Road, Pokhara | 061-534445 |
| 48 | 36 | Secured Securities Limited | Opp to Padmadaya School Pradarshani Marga, Kathmandu-28 | 01-4262861, 01-4224523 |
| 49 | 36_RWS | Secured Securities Limited | Bhadrapur Road, Birtamode, Jhapa | +977-23-546608, 546609, 9840065920 |
| 50 | 37 | Swarnalaxmi Securities Pvt.Limited | Putalisadak, Kathmandu | 01-4168219, 01-4168291, 01-4168064 |
| 51 | 37_RWS | Swarnalaxmi Securities Pvt.Limited | Sangam Chowk, Hetauda | 9855037137 |
| 52 | 38 | Dipshika Dhitopatra Karobar Co. Pvt.Limited | Anamnagar, Kathmandu | 01-4102532, 01-4102534 |
| 53 | 38_RWS | Dipshika Dhitopatra Karobar Co. Pvt.Limited | Yug Plaza, Purano Bhansar Road, Dhangadi | 091-521984/85 |
| 54 | 39 | Sumeru Securities Pvt.Limited | Hattisar, Kathmandu | 01-4444740, 01-4424209 |
| 55 | 39_RWS | Sumeru Securities Pvt.Limited | Birtamode, Jhapa | 023-541919 |
| 56 | 40 | Creative Securities Pvt.Limited | Kamalpokhari-28, Kathmandu | 01-4419572, 01-4419582 |
| 57 | 40_RWS | Creative Securities Pvt.Limited | Near to Neco Insurance, Benepa | 011-663258, 664176 |
| 58 | 41 | Linch Stock Market Limited | New Baneshwor, Kathmandu | 01-4469367, 01-4469068 |
| 59 | 41_RWS | Linch Stock Market Limited | Milanchowk, Butwal | 071-547292 |
| 60 | 42 | Sani Securities Company Limited | Jamal, Kathmandu | 01-4166005, 01-4166006 |
| 61 | 42_RWS | Sani Securities Company Limited | Sahidchowk, Narayanghat | 056-572272 |
| 62 | 43 | South Asian Bulls Pvt.Limited | Tulsi Krishna Plaza 2nd Floor, Kuleshwor-14, Kathmandu | 01-4284785, 01- 4284786 |
| 63 | 44 | Dynamic Money Managers Securities Pvt.Ltd | Kamalpokhari, Kathmandu | 01-4414522, 01-4413421 |
| 64 | 44_RWS | Dynamic Money Managers Securities Pvt.Ltd | Near to Deva Bikas Bank, Banepa | 9843252336 |
| 65 | 45 | Imperial Securities Co .Pvt.Limited | Anamnagar, Kathmandu | 01-5706004, 5705187, 5705344 |
| 66 | 45_RWS | Imperial Securities Co .Pvt.Limited | Jumla Road, Surkhet | 083-522503 |
| 67 | 45_RWS | Imperial Securities Co .Pvt.Limited | Dhamboji chok, Nepalganj,Hikola Building, | 081-524932 |
| 68 | 46 | Kalika Securities Pvt.Limited | Hunamanthan, Anamnagar, Kathmandu, Nepal | 977-01-5705563, 5705564, 5705565 |
| 69 | 46_RWS | Kalika Securities Pvt.Limited | Newroad, Nepalgunj | 081-527301 |
| 70 | 47 | Neev Securities Pvt.Ltd | Putalisadak, Kathmandu | 01-4168601, 01-4168572 |
| 71 | 47_RWS | Neev Securities Pvt.Ltd | Biratnagar, Ithari | 025-587408 |
| 72 | 48 | Trishakti Securities Public Limited | Putalisadak, Kathmandu | 01-4232132, 01-4168572 |
| 73 | 49 | Online Securities Pvt.Ltd | Putalisadak, Kathmandu | 01-4168298, 01-4168302, 01-4168308 |
| 74 | 50_RWS | Crystal Kanchenjunga Securities Pvt.Ltd | Jaljala Chowk, Biratnagar | 9851098200 |
| 75 | 49_RWS | Online Securities Pvt.Ltd | College Road, Dharan | 025-530683 |
| 76 | 50 | Crystal Kanchenjunga Securities Pvt.Ltd | New Plaza, Kathmandu | 01-4011176, 01-4011072 |
| 77 | 51 | Oxford Securities Pvt.Ltd | Kalimati, Kathmandu | 01-4278113, 01-4273850 |
| 78 | 51_RWS | Oxford Securities Pvt.Ltd | Lions Chowk, Narayangard | 9845066244 |
| 79 | 52 | Sundhara Securities Limited | Sundhara, Kathmandu | 01-4212215, 01-4260174, 01-4263583 |
| 80 | 52_RWS | Sundhara Securities Limited | Nabil Bank Building, Besisahar | 9851194933 |
| 81 | 53 | Investment Management Nepal Pvt. Ltd. | Tripureshwor, Kathmandu | 01-4256589, 01-4256590 |
| 82 | 53_RWS | Investment Management Nepal Pvt. Ltd. | Newroad, Pokhara | 061-537944 |
| 83 | 54 | Sewa Securities Pvt. Ltd. | Tripureshwor, Kathmandu | 01-4256642, 01-4256644 |
| 84 | 54_RWS | Sewa Securities Pvt. Ltd. | Mainroad, Hetauda | 057-524454 |
| 85 | 55 | Bhrikuti Stock Broking Co. Pvt. Ltd. | New Road, Opposite to Bhugol Park, Kathmandu, Nepal | 01-4233213, 01-4224648 |
| 86 | 55_RWS | Bhrikuti Stock Broking Co. Pvt. Ltd. | Kasturi Chowk, Ithari | 025-587273 |
| 87 | 56 | Shree Hari Securities Pvt.Ltd | Kamaladi, Kathmandu | 01-4437562, 01-4437466 |
| 88 | 56_RWS | Shree Hari Securities Pvt. Ltd | Birtamode, Jhapa | 023-542132, 023-542454 |
| 89 | 57 | Araya Tara Investment And Securities Pvt. Ltd. | Anamnagar, Kathmandu | 01-5706297, 01-5705596 |
| 90 | 57_RWS | Araya Tara Investment And Securities Pvt. Ltd. | Traffic Chowk, Butwal | 071-542561 |
| 91 | 58 | Naasa Securities Co. Ltd. | Naxal, Kathmandu | 01-4440384, 01-4440385, 01-4440386 |
| 92 | 58_RWS | Naasa Securities Co. Ltd. | Adarsha Nagar, Birgunj | 9841018232 |
| 93 | 59 | Deevyaa Securities & Stock House Pvt. Ltd | Putalisadak, Kathmandu | 01-4421488, 01-4420987, 01-4422313 |
| 94 | 59_RWS | Deevyaa Securities & Stock House Pvt. Ltd | Purano Buspark, Baglung | 068-521957 |