Quick Review

Name: Nepal Stock Exchange

Founded: 1993

Market Capitalization: $30 Billion (NRS 3, 45,276 crore)

Indices: NEPSE index

What is Nepal Stock Exchange?

NEPSE or Nepal Stock Exchange Limited, Located in Singha Durbar Plaza is the only Stock Exchange of Nepal.

If you want to know about how the market is performing in any country, you don’t have to analyze all the top companies. There is a market index in every country, you can just go through that index and know about their market. Just like NEPSE in Nepal, if you want to know about the Indian market, you can track SENSEX.

If you see people buying shares of any particular company, you can easily guess that the market value of that company is doing good at the moment, if people are selling the shares the reason might be market value going down. It is just like buying and selling things. If there is a huge demand for anything on the market, the cost of that stuff increases, or else value get decreases. Just like a normal market, share market works the same way.

As of 2021 Feb 08, there are 374 listed companies on the stock exchange, and 174 among them are currently inactive.

What is Share?

In simple language, Share is a financial name that means ownership. If anyone is interested to get company ownership they can buy a share and have a certain percentage of ownership to their name. But you won’t find private companies listed on the share market. Share market is only for public limited companies where you can buy or sell in the open market.

Why there is an existence of Share Market and how it works?

When any companies wish to expand their business but don’t have enough money for it. They have to take a loan to do that. It is going too hard for anyone to take a huge loan because you have to pay a percentage of interest and a certain amount every month. You’ve to pay it regularly and due to this your business may not expand properly. And their share market works. If any public limited companies wish to expand and don’t have enough budget, they list on the share market and give a certain amount of ownership to the people who buy shares.

When people buy shares, that company doesn’t need to pay interest, you are giving some amount of shares in return. You’ll both share the profit according to the investment you’ve made. It is like acquiring a partner for the business. When they list themselves in the share market, it gets easy to raise huge capital that needs for the business and expand to full potential.

How it’s beneficial for the Nepal government?

Our government generates a huge amount of revenue from taxes. It is one of the big sources of revenue in Nepal’s economy, not only Nepal’s economy but applies to all the countries. Nepal government has separated all the fields and policies for every sector so that people can invest in that sector. Some businesses are small but have big potential to flourish and are stuck due to no investment. To go big, the government promotes them through Share Market and people can invest to make it big which benefits both investors through profit and government through taxes. When company profit increases, the country’s economy automatically increases.

What is an IPO?

IPO refers to Initial Public Offering. If any company issues their share for the first time with the public then it’s called IPO.

What is FPO?

FPO refers to Further Public Offering. If any company issues their share for the second time to the public then it’s called FPO. The reason might be to increase its capital for further expansion.

How to enter the share market in Nepal?

To enter the share market in Nepal, you’ve to follow the following steps.

1. Open a bank account in a commercial bank.
2. Open a DMAT Account from the back
3. Mero Share Account
4. Get CRN number from Bank

If you open a Mero Share Account and get a CRN number, you can easily buy or sell shares from anywhere.

How to check the result of IPO?

You can check the result of the IPO from the Mero share App.

Check Nepal Stock Exchange Live

You can check the Nepal stock exchange live from NEPSE official website.

How to invest in Share Market in Nepal?

The share market is one of the only ways for most people to make money. The investment can be risky because you must invest in businesses, which means you lose your money if they go bankrupt or don’t do well. Shares will rise in value if the company does well and grows. It is not for everyone to invest in the stock market – but I hope to give you some advice on how to invest wisely and get started! 

The Nepal Rastra Bank regulates currency trading in Nepal. A Nepalese’s savings can be invested here for a potentially higher return than what they can expect from traditional bank deposits. As more people look for better returns on their investments, the share market has grown steadily over the last few years. Everyone wants to know how to invest in share market in Nepal but Prior to purchasing shares of a company, it is important to research the company. You can research these companies by reading their financial reports, which are available online at various websites.

Types of share market in Nepal?

Primary Market

If a company sells its share to the public and collects the capital for its project then it is called Primary Market. (Selling share directly to the investors).

Secondary Market

If you were unable or missed a chance to buy a share of any company in the primary market, you can still buy it in the secondary market. In the secondary market, bonds, shares are bought or sold by people. If you’re interested, you can buy or sell shares through a share broker in the secondary market. There is no involvement of the company in this case because the company has already taken the investment in the primary market from you.

You can also know about secondary market from the video below by Sanjog Koirala from Ideapreneur Nepal Youtube Channel.

If you want to know more about Nepal stock exchange in coming days, Follow and Share the blog. Have a great day.

Also Read: Nepali Ukhan Tukka