Do you know how to earn income from Nepal’s share market? But to do that, a little knowledge, study, and research are also necessary. If we look at the current situation, the share market in Nepal seems to be booming, so investing in Nepal’s share market can be a profitable venture, but it also involves risks.
Before trying to make money in the share market, we need to learn about it. We need to gather information about the types of share markets in Nepal, how to buy shares, how to sell shares, when to buy and when to sell shares and pay attention to details like how to profit from shares and how to avoid losses. Therefore, it is essential to have good knowledge about such matters. So, with this detailed guide, we will explain about share markets and how you can buy or sell shares in Nepal.
What is a Share Market?

Generally, the share market of Nepal refers to the market where shares of Nepali companies are bought and sold. The share market is also known as the Nepal Stock Exchange (NEPSE). In Nepal, the share market provides the facility for buying and selling shares of publicly listed companies. Companies raise capital by selling a portion of their ownership in the form of shares.
The price of shares fluctuates based on the company’s performance and investor demand. It is located in Kathmandu. By January 2025, more than 249 companies from various industries such as banking, hotels, production, hydro-power, life and non-life insurance, hotels, and tourism, among others, are listed on NEPSE.
Shareholders can earn income through:
- Capital Appreciation: The stock price increases over time so shares can be sold at a profit
- Dividends: Periodic profits distributed to shareholders
The risks are share prices can also go down, leading to loss of capital.
Types of Share Markets in Nepal
There are two main types of stock markets for investors in Nepal, namely the primary market and the secondary market.
1. Primary Market
The primary market is where a company first offers its shares to the public. This is called an Initial Public Offering (IPO). Through an IPO, investors can directly apply to the company and can participate in share trading. The primary market involves less risk.
Later, companies already listed can also issue new shares to investors in two ways:
- Further Public Offering (FPO): The company offers additional new shares. Rights Issue:
- Existing shareholders get the chance to buy more shares.
2. Secondary Market
This includes stock exchanges like NEPSE. Here, existing shareholders can buy and sell the previously issued shares between each other, like in a marketplace. For example, if you already own some Nabil Bank shares, you can sell it to another investor through the stock exchange.
Share prices keep changing in these markets based on investor demand and supply. Since the prices are more variable, the risks are higher for investors here. But large profits can also be made by selling at higher prices.
So, in short, the primary market is for new share issues, while the secondary market is where the trading of shares happens between investors. The risk is lower in primary markets and higher in secondary markets.
How Does the Nepal Share Market Work?
Buying and selling happens through licensed brokers or banks registered with the stock exchange. All transactions, payments, and share transfers are regulated for investor safety. To invest, you need to open an account and go through Know Your Customer (KYC) verification. The steps are:
1. Open a DEMAT Account
DEMAT (Dematerialized) accounts are used to hold your shares digitally instead of using physical certificates. Open a DEMAT account with a broker/bank.
How to Open a Demat Account?
- Go to a licensed brokerage firm or bank providing Demat services.
- Request you to open a new Demat account.
- Fill out the account opening form.
- Provide citizenship, PAN details, and address proof for KYC.
- Submit self-attested document copies.
- The broker verifies the details.
- Get your Demat account number in 2-4 working days.
- Use the Demat account to hold your shares electronically.
Requirements:
- ID proof such as citizenship or passport
- Nominee details (over 18 years old)
- Bank account details
You will receive a unique DEMAT Number and Client ID (CID) for account access.
2. Open Trading & MERO Share Accounts
For Secondary Market Trading: Open a trading account with a broker using the DEMAT number, and get a username & password for trading platform access.
For Primary Markets (IPOs, FPOs, Rights): Register on the MERO Share platform using the DEMAT Number Apply for IPOs online via the platform
Both platforms are regulated by the Securities Board of Nepal (SEBON).
3. Start Trading or Applying for IPOs
Now you can buy or sell existing shares in the secondary market using the trading account TMS) login. You can also apply for new IPO/FPO company shares using the MERO Share login.
Here are the step-by-step processes:
A. How to Buy Shares in Nepal
(Note: You need to keep in mind that before buying shares, you must have the same amount of money loaded into the “Collateral Fund” option. Now, to load money, you should follow the methods below):
How do you load collateral into TMS?
Here are the easy steps to load money into the collateral fund in TMS:

- Login to your TMS trading account
- On the left sidebar, go to Fund Management > Collateral Management
- Click on “Load Collateral.”
- Select mode of payment (eSewa, IME pay, ConnectIPS, etc)
- Enter the amount you want to load
- Enter any remarks or notes (optional)
- Click “Submit”
- The page will redirect you to the payment gateway to load the funds
- Enter your payment gateway credentials and complete the payment
- After successful payment, the loaded amount will be reflected in your TMS collateral balance.
Key things to remember:
- Minimum of Rs 1000 or higher as per your broker’s rules
- Different payment gateways have different processing times
- Call your broker to update collateral allocation limits
- Loaded collateral amount can only be used to buy more shares or get a Refund.
So in summary, log in to TMS Account, go to collateral management, select the load collateral option, make payment via the gateway, inform the broker, and use the money to buy shares.
How to Buy Shares in Nepal:

Here are some easy steps to buy the shares:
- Click on the “Buy” button on your trading platform
- A blue icon will appear
- Select “Equity” as the share type
- Enter the stock symbol of the company you want to buy
- Input the number of shares you want to purchase
- Double check order details – company name, quantity of shares
- Click on the “Buy” button to place the order
- The order will be processed by the exchange
- You will get a confirmation message once executed
- Shares will be reflected in the Demat account in a few days
So in summary, the key steps are:
- Click the Buy button, Select Equity, Enter the company ticker, Quantity of shares, Review details, Click Buy again to place an order, Get trade confirmation, and shares added to the Demat account.
B. How to Sell Shares in Nepal
Here are the steps to sell shares online in Nepal in bullet points:

- Click on the “Sell” button on your online trading platform
- A red icon will appear
- Select “Equity” as the share type
- Enter the stock symbol of the company shares you want to sell
- Input the number of shares you want to sell
- Enter the price per share you want to sell at
- Review order details – company, quantity of shares, and price
- Click the “Sell” button to place a sale order
- Order gets executed if the bid price matches
- You will receive a confirmation message on the execution
- Funds from sold shares will be credited to your trading account within 5 days
In summary, the key steps are:
- Click the Sell button, Select Equity, Enter company ticker, Quantity of shares, Sell price per share, Review details, Click Sell to place an order, Get order execution, and Funds get credited to the trading account
Now, after completing your order in your TMS Account, then calculate the WACC and Share the transfer through the Mero Share Website or App
- Login to your Mero Share
- Go to My Purchase Source Option
- Click on the Purchase source option, choose your company symbol, click the search option, tick mark on select all optional, then click the proceed option.
- Wait for the ‘My Holding’ option to appear. Once it appears, navigate to the ‘My Holding’ section and search for your company symbol. Tick mark the ‘Select All’ option and then click on the ‘Proceed’ option.
- Now, for the final step, transfer your shares. Go to the ‘My EDIS’ option, click on the middle ‘Transfer Share’ option, and then select the ‘View Details’ option. Tick the checkbox and click on the ‘Proceed’ option. Once completed, wait for your balance. It typically takes 4 to 5 working days for your balance to your bank account.
Trading Fees
You need to pay broker fees and government tax per transaction:
- Broker Fee: 0.25% or 0.50%
- SEBON Fees: 0.15%
- NEPSE Charges: 0.03%
- CDSC Charges: 0.05%
Trading Fees and Commissions for Buying/Selling Shares:
| Transaction Amount | Fees | Additional Charges |
|---|---|---|
| Below Rs 50,000 | 0.4% or a minimum of Rs 10 | Rs 25 share transfer charge |
| Rs. 50,000 to 500,000 | 0.37% | 0.015% regulator charge + Rs 25 share transfer charge |
| Rs. 500,000 to 2 million | 0.34% | 0.015% regulator charge + Rs 25 share transfer charge |
| Rs 2 million to 10 million | 0.3% | 0.015% regulator charge + Rs 25 share transfer charge |
| Above 10 million | 0.27% | 0.015% regulator charge + Rs 25 share transfer charge |
Trading Fees and Commissions for Bonds/Debentures:
| Transaction Amount | Fees | Additional Charges |
|---|---|---|
| Below Rs 500,000 | 0.1% or a minimum of Rs 10 | 0.01% regulator charge + Rs 25 share transfer charge |
| Rs 500,000 to 5 million | 0.05% | 0.005% regulator charge + Rs 25 share transfer charge |
| Over 5 million | 0.02% | 0.005% regulator charge + Rs 25 share transfer charge |
Trading Fees and Commissions for Mutual Funds:
- Transaction Amount: Same as Bonds/Debentures
- Fees: Same as Bonds/Debentures
- Additional Charges: 0.01% regulator charge + Rs 25 share transfer charge
In summary, fees are based on transaction size, with lower percentage fees for higher transaction amounts. Additionally, there are additional regulatory and demat charges for each transaction.
Conclusion
So, friends, as we have learned above, what is the stock market, two types of markets: account opening process, trading platform, order placement, payment system, and fees.
Now start investing slowly, monitor your portfolio regularly, and use stop-loss strategies to minimize risk. Over the long term, stock market investing can beat inflation and build significant wealth.
I have covered the main points of stock investment for Nepali investors. Let me know if you need any clarification or want me to add more details!
Thank you for reading this article. If you found knowledgeable content in this article, please share it with your relatives
