How to Invest in Nepalese Stock Market From Abroad

Stock market is not a new word for a world capital market but for many Nepalese it is still new. Many Nepalese people they do not believe that people can make money from stock market. At the same time, there is chances to lose the money. As per one survey, less than 30% people can money in short term stock market while the chances will increase money if you invest for long term.

Nepalese share market is developing gradually. If we see the data of last 10 year the stock market growth is phenomenon in Nepal. As per the data, Total market capitalization was Rs 371.12 billion in 2068/69, however, the today’s market capitalization is Rs 3235 billion.

The data shows the listed companies and the people are increasing massively in Nepalese stock market. In last 2 years, more than 2 million people added in stock market. There are many ways that you can make the money from stock market. Investing in stock market is also you are gathering the knowledge about the country’s economy, society, politics and so on.

Start Investing From Foreign Country

Nepal is also focus more in digital during the COVID Pandemic. There are couple of step you should focus to start the trading at Nepalese stock market (NEPSE). To make the money in stock market you should very patience and good learner. Also, if you are new in stock never borrow money at interest with other people because the main feature about stock market is being unpredictable market.

How to Save Money and Invest in Stock Market?

Almost all people have different range of income level. Also, most of the Nepalese people work abroad and they earn at weekly and monthly basis. So, to start trading you need to separate at least 10% of your earning to share market. Never invest all your income at stock market or any other capital market.

For example: if you earn 50000 per month just save 5000 for investment and gradually when you understand about market you can invest more. Investment is always for future never get disappointed by short term lost and try to save as much as you can.

In Nepal there is two types of stock market which is primary and secondary. Primary stock market is place where the company first time issue their equity to general public to exchange with cash. Recently, many company are issuing IPO which is primary market and investment IPO is safer than the secondary market. The market where buyer and seller traded stock which were already issued.

In Nepal there are more than 260 companies are traded every day in secondary market. So, its safer if you invest first at primary and move to secondary. To start the trading, you need to have following account at bank and broker.

  • Open Bank Account: Opening bank account is the very first step for trading. If you are at foreign country as well you can open bank through video call in many banks. For e.g.: NMB bank Nepal start the account opening through video call. So, you need to open the saving account at ant bank.
  • Demat Account: After opening the bank account you need to have Demat Account. Demat account can open at any depository bank, commercial and development bank. Demat is the account where you hold your shares. Many banks open the online DEMAT account.
  • Open Mero Share Account and Register CRN: The third step is to open mero share account and Register CRN which you can do at any commercial bank. For example, NIC Asia offer online account opening, online DEMAT opening, and online Mero Share and CRN. Mero share and CRN is necessary to apply for IPO. Also, mero share shows all your shares and portfolio. So, this is compulsory to have mero share.
  • Online Trading Account: This is the real place where you do the transaction after start trading. There are many brokers in Nepal who give the service to open online trading account. Broker also open the DEMAT account, renew DEMAT account. NASA is one of the broker of Nepal who provide the service of online trading account. After filling the form, they provide you the user name and password and their own TMS login link where you login the provided ID and Password. To buy the stock you need provide collateral. Generally if you give them 1 lakh as a collateral they will give access to buy 4 lakh of stock to you.

So, the above 4 steps are major account you need to open to start the trading. Although it looks lengthy it does not take long time.

What After All Account Open?

After opening the all account, you can buy the stock through the online TMS (https://tms58.nepsetms.com.np/login) and also you can apply IPO, right share from the Mero Share Account. After all account, you can open Connect IPS account and link your bank saving account with connect IPS. Through connect IPS you can send money to any bank and any person. Main reason to link Connect IPS is to transfer money to broker after you the share.

You need to pay the amount after you purchase and also you have to EDIS through Mero Share after you sell the share. Generally, it will take 4 to 5 days to get amount after you sell and also within 5 days you get your share at Mero share. But generally, it depends with your broker as well.

Remember before you buy and sell

Stock market is not a gambling because both buyer and seller and can make profit at this market. First, do a lot of study before you the stock. For beginner its good if you do the fundamental analysis of company invest. For beginner it’s better to but the stocks with less risk like banks, insurance, good hydro, and micro finances. Focus more on bonus share rather than short term profit. If you see for long term, you will make the money in stock market.

Still many Nepalese put their money at bank with very less interest rate or at fixed deposit. But its good if you invest that money at capital market rather than putting at saving and fixed account. For example; in Australia many Nepalese people make weekly money but they do not invest at all and when they done here and go back Nepal, they will not have any idea about Nepalese economy. So, its best if you start save today and invest from tomorrow. Investment is always for tomorrow.

Conclusion

It’s possible to invest from foreign countries in Nepalese capital Market. Capital market is growing in Nepal so it’s a best time to grow you along with your investment.

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