Broker license diyo haii.. cheers!!!
View on r/NepalStock by gorkhalikush
Tag: License
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Controversy Surrounds CARE Ratings Nepal as License Suspension Looms
CARE Ratings Nepal Limited (CRNL) has been notified by the Securities Board of Nepal (SEBON) that the action process, which was initiated based on a request for explanation made five and a half months ago, is currently underway. The SEBON’s Board of Directors (BODs) had requested an explanation from CARE Ratings Nepal during their meeting on 24th Poush, 2079, regarding why their license should not be suspended. As CARE Ratings Nepal did not respond to the request, the process of suspending their license was initiated. The suspension was prompted by allegations of providing a credit rating to Ghorahi Cement in a situation involving a conflict of interest.
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SEBON issues Letters of Intent to 13 new broker companies who submitted license applications.
The Securities Board of Nepal (SEBON) has initiated the process of granting new licenses for stock brokers and dealers. Following the revision of the Securities Market Operation Regulations 2064 and the Securities Dealers Regulations 2064, SEBON announced a 30-day deadline for accepting applications for new licenses. As a result, 45 companies applied for stock broker licenses and one company applied for a stock dealer license.
Recently, SEBON issued Letters of Intent (LOI) to 13 new broker companies that had applied for licenses. Earlier, at a board of directors meeting, 16 companies had already received LOIs. So far, 29 companies that have applied for broker licenses have received LOIs from SEBON.
Once a new broker company receives a letter of intent from SEBON, it is required to set up its infrastructure according to the board-established standards. Following infrastructure preparation, SEBON will monitor the company to ensure that all requirements are met. If all requirements are met during monitoring, the company will be granted a license.
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‘Himalayan Stock Exchange’ applied for license of new stock exchange
“Himalayan Stock Exchange” has applied for a license to the Nepal Securities Board for a new stock exchange. The application has been filed by Himalayan Stock Exchange, which has been established with the participation of prominent business families in Nepal, including Shankar Group, along with the largest industrial houses in Nepal such as Shekhar Golchha of Nepal Chamber of Commerce and Industry, former presidents of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pashupati Murarka, Rajendra Khetan of Khetan Group, Satish Lal Mor of Lucky Group, Vivek Dugar of Dugar Group, Shourabh Jyoti of Jyoti Group and other major traders and business houses. This is the first application for a stock exchange license by Himalayan Stock Exchange.
The application has been filed by Himalayan Stock Exchange, along with investment from Rohit Gupta, Ashish Shrestha, Juni Gurung, and Deepak Bhatta.
The deadline for applying for a license for the commodity exchange (Commodity Exchange) along with the stock exchange is until 10th Baisakh, 2079 (April 22, 2023). So far, only one application has been submitted under the name of Himalayan Stock Exchange.
Similarly, there has been no application filed until Friday for the commodity exchange. The applications for the stock and commodity exchanges are separate.
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SEBON Extends the Deadline for Companies Interested in Stock Exchange Operations
The Securities Board of Nepal (SEBON) has issued a notice to eligible institutions requiring them to apply for a Commodities Exchange Market Operation license and a Stock Exchange Operation license within 10 days.
To provide investors with market access, enable commodity price innovation, and provide investors with alternative investment instruments to preserve price stability, a commodities exchange market that is investor-friendly, competitive, worldwide in scope, and competent is required.
In order to run the commodities exchange market under the rules, guidelines, and other applicable regulations, those who seek to form a limited liability company in compliance with the prevailing legislation must first get board permission.
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The Insurance Authority Issues Licenses to Two More Micro-Insurance Companies
The Nepal Insurance Authority has licensed two more microinsurance businesses.
At its meeting on Tuesday, the authority’s board of directors voted to provide licenses to two more micro insurance companies. The authorities have given licenses to Protective Micro Insurance Ltd Nepal and Crest Micro Life Insurance Ltd.
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The suspension of a broker license has resulted in the freezing of approximately Rs. 12 Arba in capital.
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
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How to Renew Driving License in Nepal
You need to renew your driving license in Nepal every 5 years and it can be done through any Transport Management office.
Even though there are only a few steps to license renewal in Nepal, it almost takes 2 to 3 hours.
As offices are closed on weekends and so is the DOTM Nepal most of us need to take half a day or take leave from work just to renew our license.
This is also one of the main reasons why people get fined and have to pay late renewal fees.
Service Driving License Renewal in Nepal Issued By Department of Transport Management Validity 5 Years Renewal Fee Rs 1500 Fine After 90 days or more Payment Methods Cash Application Mode Offline Official website https://www.dotm.gov.np/ To renew your driving license in Nepal you will need to visit the Department of Transport Management office and follow the process below.
- Receive token and EDL print
- Provide Biometrics
- Pass medical checkup
- Calculate your fees
- Payment
- Receive receipt (Wait for license print)
As you already know Nepal has started implementing smart driving licenses including an option to upgrade for existing license holders.
This has hugely impacted DOTM’s printing and distribution timing, some are still waiting for their license after a year, so you might have to wait a little longer to receive your driver’s license.
But you will receive a receipt that can be used as a replacement until you receive your original renewed license.
Documents required to renew a driving license are
- Citizenship original and photocopy
- License original and photocopy
Step-by-Step Guide process to renew License in Nepal 2023
1. Receive token and EDL print
The first step is to take a token number for your license renewal, this is the waiting list. And receive your EDL print (license information) from room 101.
The room number might be different for different cities and offices.
2. Provide Biometrics
The second step is to give or verify your digital biometrics, if you have given your biometrics to DOTM then they will verify your digital fingerprint and if your information matches. You will be sent to the next step.
3. Medical checkup
The third step is to pass your medical, which is usually an eyesight and color blindness test. They will check if you can see properly or not.
If you fail this test then you might need to wear glasses and come back later.
4. Calculate your license fees
The fourth step is to calculate how much you need to pay to renew your license. This depends on your license type and if you are paying on time or not.
If you have to pay for renewal before 90 days of expiry then you do not have to pay a fine but if this exceeds then you will be fined. Check the table below for fines and fees.
5. Payment
The fifth step is to pay your fees, you need to fill out a bank voucher and deposit it.
6. Receive a receipt
After paying you need to wait for the receipt. After it is ready they will call you by name and give it to you.
You will receive two receipts. One is payment and the other (Pink) can be used as a license.
After this, you can go home, and to check your license print status you can check their official website.
About License Renewal fees in Nepal
The Department of Transport Management charges renewal fees to all Nepalese license holders after the expiry date.
As of 2023 Driving license renewal charges in Nepal start from Rs 1500 for two-wheelers, 2000 for small vehicles such as Cars and Jeeps, 2500 for heavy vehicles, and the highest will be Rs 3000.
These renewal fees are divided into categories of vehicles see the image below for more information.
How much is the fine for an expired license in Nepal?
The validity of your license in Nepal is of 5 years only and if you want to keep using it then you need to renew it accordingly.
If you fail to renew your license on time then you will have to pay a fine as high as 500% plus your actual renewal fees.
If you fail to renew your license within 90 days of expiry, you will be charged 100% until the first year and will keep on adding 100% as the year passes by.
How much is the fine for an expired license in Nepal?
You need to pay a fine of 100% to 500% in Nepal if you fail to renew your license on time.
After how many months will I have to pay fines for an expired license in Nepal?
The Department of Transport Management starts charging fines for driver’s licenses after 3 months or 90 days of their expiry.
Frequently Asked Questions on License Renewal
How much does it cost to renew a license in Nepal in 2023?
The entry fee for renewing a license in Nepal is Rs 1500, excluding other charges such as photocopies, photos, stamps, and application charges.
The cost of renewal depends on what type of license you own such as Bike, Car, and Big vehicle.
What happens if a driving license is expired?
If your license is expired, then you cannot drive in public spaces. Unless you renew your license and pay the government the renewal fee. Also if you are caught driving without a license then you will be fined and might get other punishments as well.
How to renew a driving license in Nepal?
Visit DOTM and follow the steps below to renew a license in Nepal.
1. Receive token and EDL print
2. Provide Biometrics
3. Pass medical checkup
4. Calculate your fees
5. Payment
6. Receive receipt (Wait for license print)Can I renew my driving license online in Nepal?
Yes, you can renew your driving license online, visit the DOTM’s official website dotm.gov.np for more information and the application process.
Where can I renew my license in Kathmandu?
You can renew your license from The Department of Transport Management office in Kathmandu.
Where can I renew my license in Pokhara?
You can renew your Driving license from DOTM which is located in the Transport Management Office: Driving License, Prithivi Chowk, Pokhara
Do I need to pay fines for an expired license in Nepal?
You have 3 months or 90 days after your license expires, after this period you will be fined 100% for the first year.
What is the maximum validity of a license in Nepal?
In Nepal, the maximum validity of a Driving License in Nepal is of 5 years.
What document do I need to renew my license in Nepal?
Documents you need to renew your license in Nepal are a citizenship certificate, an expired driving license, and photographs.
Can I renew my license early in Nepal?
Yes, you can renew your driving license early in Nepal.
How to check the status of driving license renewal in Nepal
It is easy to check the status of your license, you can check it on your driver’s license. It has all the information including the expiry date.
How to renew a driving license that has expired more than 90 days in Nepal
You can renew your driving license as usual but as it has exceeded more than 90 days, you will be charged a 100% fine for it.
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Kantipur Television Network will hold its annual general meeting on Chaitra 17 and will issue public shares at a premium price.
Kantipur Television (KTV) is a private television station based in Kathmandu, Nepal. Kailash Sirohiya is the chairman and managing director. KTV, which debuted in July 2002, is licensed for both terrestrial and satellite transmission. Tinkune is the headquarters of Kantipur Television. On the 17th Chaitra, 2079, Kantipur Television Network Limited will hold its Special General Meeting (SGM). The meeting will begin at 1 PM in the company’s headquarters in Tinkune, Kathmandu.
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The Cryptocurrency debate: Is legitimacy necessary?
Cryptocurrency, or “decentralized electronic currency,” is gaining popularity around the world these days. Last January, Nepal’s neighbor India published a “National Strategy on Blockchain” to regulate the technology. However, such currencies and transactions are absolutely prohibited in Nepal.
On the Internet recently, there has been a lot of discussion and information concerning cryptocurrencies. However, in Nepal, a correct understanding of this has yet to be created. Many people have heard of Bitcoin and have a basic knowledge of it. People, on the other hand, seemed to comprehend that ‘cryptocurrency’ means ‘bitcoin,’ and that ‘bitcoin,’ in turn, means ‘cryptocurrency.’ Not only the general people, but also the Nepal Rastra Bank, appears to believe this.
On the 13th of August 2017, the NRB issued a statement claiming that ‘Bitcoin transactions are unlawful in Nepal.’ This, however, has no bearing on other cryptocurrency coins.
Cryptocurrency and Bitcoin
According to CoinMarketCap, there are already over 10,000 cryptocurrencies in circulation around the world. Bitcoin, the first cryptocurrency, is the most valued and widely used. A Japanese programmer invented Bitcoin in 2009.
Thousands of cryptocurrencies, such as Bitcoin, are now available around the world. Ethereum, Polkadot, Ripple, and Dogecoin are examples of cryptocurrencies. In Nepal, however, the belief that Bitcoin is the only cryptocurrency is widespread.
Is it due to a lack of awareness or carelessness?
All economic transactions in Nepal are regulated by the Nepal Rastra Bank. The bank’s policy capacity is called into doubt by its statement on Bitcoin, which is also the guardian of banks, financial institutions, and digital service providers in the country.
Foreign exchange transactions can only be carried out with a license from the Rastra Bank, according to Nepalese legislation. Money must be remitted abroad to trade and invest in bitcoin. The NRB’s declaration on Bitcoin, which came after it was proclaimed that moving money overseas without permission is prohibited, appears to have caused even greater confusion among the people. Is it allowed to invest in other coins? This is an intriguing question that occurs.
Investing possibilities
The worldwide media has recently reported on persons who have made millions of dollars by investing in cryptocurrency.
Two weeks ago, it was reported that a high-ranking Gold Sachs employee had resigned after earning tens of millions of dollars using DogeCoin. Similarly, word circulated quickly that a 25-year-old American had become a millionaire at such a young age by investing in Bitcoin. While its investment and business are growing in Europe and the United States, as well as in India, it is outlawed in Nepal.
At first look, Bitcoin does not appear to be a viable investment option in Nepal, where it is prohibited to transmit money overseas without the approval of the central bank. However, based on posts and statuses on social media and in groups, it appears that a significant quantity of money is being traded surreptitiously from Nepal.
Nepalis are investing in several ways, such as through the creation of websites, peer-to-peer transactions, or through friends and relatives residing abroad. People that invest in cryptocurrencies join groups on social media sites such as Facebook, WhatsApp, and Viber to trade it. Transactions, on the other hand, are not readily apparent because it is against the law.
Limitation of the declaration of illegality to paper
Many business operations that have been declared illegal by Nepalese law have not been stopped by the government. It doesn’t matter if it’s betting, Hundi, or e-commerce.
The indifference of stakeholders, despite the fact that the government’s policies and judgments are limited to paper, and the knowledge that comes out in pieces about these transactions that are done invisibly, is astounding.
Khalti, a digital service provider, alerted the Rastra Bank in April, requesting an investigation into the transaction statements of roughly a thousand users on suspicion of betting. However, the NRB has yet to take any action or make any statements in this regard.
Similarly, despite the fact that the Hundi business of transporting money from Nepal to foreign countries is unlawful, it appears that no action has been taken. Similarly, the Nepal Rastra Bank and the government appear to be on the same page when it comes to Bitcoin.
Is it important to have legitimacy?
This can be viewed from two angles. The world’s most powerful economies have endorsed cryptocurrencies, proclaiming it to be the currency of the future. Cryptocurrencies are being used to pay for restaurant bills, Netflix subscriptions, Tesla cars, and even sports tickets in some regions.
Its instantaneous legitimacy is unthinkable in Nepal, where moving money overseas is a crime. However, if Nepalese policymakers can interpret cryptocurrencies and Bitcoin differently in the near future, it may obtain legitimacy.
Trading in cryptocurrencies, which resembles stock market transactions, is less expensive than trading in fiat money (rupee, dollar, euro, pound, etc.) since cryptocurrency transfers do not require the use of a third party (bank). Without the need of a third party, money can be sent from anywhere in Nepal to anywhere in the world.
Cryptocurrency transactions are made feasible via blockchain technology. As a result, there is no need for a third party to complete the transaction. As a result, transactions are simple, secure, and rapid.
How do the transactions take place?
By opening a TMS account, you can purchase and sell cryptocurrency in the same manner you can buy and sell stocks (on the stock market). Buying and selling takes place on a variety of platforms. It can be traded on sites such as Binance, Crypto.com, Robinhood, Etoro, and Coinbase, for example.
To store this, you’ll need a crypto wallet. The use of blockchain technology is thought to be safe and dependable. To put it another way, transactions on the platforms can be compared to money kept in eSewa, and using a crypto wallet to make bank account deposits.
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ISP Toll-Free Numbers in Nepal
The Nepal Telecommunications Authority (NTA) has made toll-free numbers mandatory for Internet Service Providers (ISPs) in Nepal. This means that, sooner or later, every ISP will need their own toll-free number. To summarize, toll free numbers are phone numbers that can be used to contact Nepal’s Internet Service Providers for free.
ISPs must hold toll-free numbers for efficient customer care, assistance, and internet supply maintenance, according to NTA guidelines. Furthermore, toll-free numbers can boost not only internet access but also customer service. Furthermore, with toll-free numbers, consumers would be able to openly and conveniently express their dissatisfactions, suggestions, and questions.
We’ve compiled a list of toll-free numbers for some of Nepal’s most popular Internet service providers.
ISPs Toll free numbers Nepal Doorsanchar Company Ltd. | Nepal Telecom 1498, 198 Worldlink Communications Ltd. 166001-55050 Subisu Cablenet Pvt. Ltd. 166001-59999 Classic Tech Pvt. Ltd. 16600150999 Vianet Communication Pvt. Ltd. 16600188444 Nepal Doorsanchar Company Ltd. | Nepal Telecom Toll-free Number
Nepal Doorsanchar Company Ltd., widely known as NTC or Nepal Telecom, is the prestigious telecommunication service provider in Nepal. Along with telecom, the company is also a famous internet service provider. It’s contact details are:
- NTC Toll-free number: 1498, 198
- Head office: 977-1-4210106, Kathmandu
- Email: ntc.cco@ntc.net.np
Worldlink Communications Ltd. Toll-free number
Worldlink is one of the renowned and largest internet and network service providers in Nepal. The company has been providing quality internet services. In addition to this, its services are ever-improving. But things aren’t perfect forever, that’s when the need to contact them comes in. Their contact details are:
- Worldlink Toll-free number:166001-55050(NTC)
- Head office: 977-9801523050 (Ncell) & 977-01-5970050 (NTC), Jawalakhel, Lalitpur
- Email: info@worldlink.com.np
Subisu Cablenet Pvt. Ltd. Toll free number
Subisu is another prestigious ISP in Nepal. Initially, the company served as a cable & fiber internet and Digital TV service provider. With this been said, Subisu becomes a multi-tasker. To contact Subisu:
- Subisu Toll free number:166001-59999
- Head office: 01-4429616, Baluwatar, Kathmandu
- Email: info@subisu.net.np
Classic Tech Pvt. Ltd. Toll-free Number
Classic Tech is another competitive internet and network service provider in Nepal. Moreover, it is a licensed company to provide trustworthy customer service to its users. It’s contact details are:
- Classic Tech Toll-free number: 16600150999
- Head office: 9801006633, New Baneshwor, Kathmandu
- Email: info@classic.com.np
Vianet Communication Pvt. Ltd. Toll-free number
Vianet is one of the leading internet and TV service providers in Nepal. Since very long, the company has been serving people with high end internet service. And even today, you’ll find people appreciating it’s internet quality and speed. To contact them:
- Vianet Toll free number: 16600188444
- Head office: 01-5970444, Jawalakhel, Lalitpur
- Email: support@vianet.com.np
Additionally, the list of other ISPs with their toll free numbers are as follows:
Other ISPs Toll free numbers Broad Band Nepal Pvt. Ltd. 166071-52004 (For NTC users) Techminds Networks Pvt. Ltd. 16605651222 (For NT Users), 9801575666 (For Ncell Users) East Link Technology Pvt. Ltd. 166001-95985 Sky Broadband Pvt. Ltd. 166001-58887 Himalayan Online Services Pvt. Ltd. 16600149520 Arrow Net Pvt. Ltd. 16600142222 Metrolink Business Group Pvt. Ltd. 16607156222 Big Marshyangdi Net Pvt. Ltd. 9801565666 Prabhu Digital Ltd. 16600178999,
980157199Mercantile Communication Pvt. Ltd. 16600100822 Super Eight Network Pvt. Ltd. 9801575750 Infonet Communication Pvt. Ltd. 1660774002 Unified Communication Pvt. Ltd. 16602358666 Broadlink Communication Pvt. Ltd. 9801571235 TechMinds Network Pvt. Ltd. 16605651222,
9801575666Ultra Net Communication Pvt. Ltd. 16601166729 Web Network Pvt. Ltd 16607156555 First Link Communications Pvt. Ltd. 16602358555 Everest Wireless Network Pvt. Ltd. 9801571005 ( For NCELL users), 16608352003 Simpal Media Network Pvt. Ltd. (SIMTV ) 9801544000 Mahakali Digital Network Pvt. Ltd. 1660017899 (For NTC users),
9801571999 (For NCELL users)Shangrila Informatics Pvt. Ltd. 16600102725 Sustainable Networks Pvt. Ltd. 16600119335 Loop Networks Pvt. Ltd. 9801571570 Kriti Darshan Media Pvt. Ltd. 16602558558 Dish Home Pvt. Ltd. 16600122000 Super Sitapaila Net.Pvt. Ltd. 16600162222 Web Surfer Nepal Communications System Pvt. Ltd. 16600170222 Lumbini Max Digital Cable Net Pvt. Ltd. 16607156333 Meta Link Pvt. Ltd. 16600194541 Acme Technical Institute Pvt. Ltd. 16607852010 WiFi HD Nepal Pvt. Ltd. 9801567779 VNS Technology Pvt. Ltd. 16604152980 Zishan Networks Pvt. Ltd. 16605552786 Interweb Network Pvt. Ltd. 16606156900 City Net Pvt. Ltd. 16600193330 K.C.N. Net Pvt. Ltd. 16600115000 Net Max Technologies Pvt. Ltd. 16600156666 Cherry World Communication Pvt. Ltd. 9801571266 Waling Internet Pvt. Ltd. 16606342003 Max Net Solution Pvt. Ltd. 9801574040 Prime Network Pvt. Ltd. 16605651245 Limpid ICT Solution Pvt. Ltd. 16600164186 Regmi Media INC. Pvt. Ltd. 16607152001 Rapid Unique Network Pvt. Ltd. 16606552002 Infocom Pvt. Ltd. 16600185000 Simrik Internet Pvt. Ltd. 16606156780 Smart Link Network Pvt. Ltd. 16600100108 LNT Infotech Pvt. Ltd. 16606152020 Next Geekers Pvt. Ltd. 16600180444 Life Net Pvt. Ltd. 16608352007,
9801571888Neo Link Pvt. Ltd. 16608852305 Bihunkot Internet Pvt. Ltd. 16606852009 Nepalink Communication Pvt. Ltd. 9801571100 I zone Pvt. Ltd. 16602142001 Pathibhara Network Pvt. Ltd. 9801575959 Surkhet cable Net T.V. Pvt. Ltd. 16608352008 Syangia Media Pvt. Ltd. 16606342008 Wifi Tech Nepal Pvt. Ltd. 9801859000, 9801859004 Broadband solutions Pvt. Ltd. 16605651555 Access world Tech Pvt. Ltd. 16600151065 Smart Telecom Pvt. Ltd. 4242/14242 IBSS Nepal Pvt. Ltd. 16600181078 World Fiber Net Pvt. Ltd. 16600107555 Dolfin Net Communication Pvt. Ltd. 9801574100 Pals Network Pvt. Ltd. 16607152002 Fiber world communication Pvt. Ltd. 9801571720, 16607852003 Mithila Digital Nepal Pvt. Ltd. 16600116999 Clean Network Pvt. Ltd. 16603352002 -
Stock Trading in Nepal – An Introduction
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.
1. GET STARTED: OPEN A DEMAT ACCOUNT
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.
2. KNOW THE MARKET
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.
3. PARTICIPATE IN THE PRIMARY MARKET – APPLY IN PRIMARY OFFERINGS
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.
4. PARTICIPATE IN THE SECONDARY MARKET– OPEN A TRADING ACCOUNT AT A STOCKBROKER OFFICE
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.
5. STILL CONFUSED- SEEK PROFESSIONAL HELP
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!