What is share market?

In a share market, shares are bought and sold. The stock market is a share market, however besides shares of companies, other instruments like bonds, mutual funds and derivative contracts too are traded in the stock market.

There are two kinds of share markets:

• Primary share market
• Secondary share market

In the secondary market, investors trade already listed securities by buying and selling them. Secondary market transactions are transactions where one investor buys shares from another at the prevailing price. Normally, these transactions are conducted through a broker. Secondary market offers investors a chance to sell all its shares and exit the financial market.
A company enters the primary market to raise funds. It is in the primary market that a company gets registered to issue shares to the public and raise money. Companies generally get listed on the stock exchange through the primary market route. In case a company is selling shares for the first time, it is called an Initial Public Offering or IPO, after which the company becomes public. While going for an IPO, the company has to provide details about itself, its financials, it promoters, its businesses, stocks being issued, price band and so on.

In order to invest in the share market, we will tell you the step-by-step process after which you can be able to be an investor.
First, you will need a bank account, you can open an account as per your convenience but make sure that the company provides Applications Supported by Blocked Amount (ASBA) service.
The second thing you will need is a dematerialised account, simply known as a demat account. Most of the commercial banks in Nepal provide demat account services. Thus, if you have a bank account, you can apply for the demat account which will hold your shares. Besides that, other stockbroker companies also have demat account facilities. If you get dividends from the company you have invested upon, you will receive that in your demat account.
Obtain Meroshare login credentials from the DP holder. You will need to fill a different form for the credentials. Besides, you will also need your customer reference number (CRN), which will also be provided to you by the DP holder. Once you obtain it, you can log in to Meroshare platform from here.
Once you are able to log in to the Meroshare through the web portal, you are ready to invest in the primary market. For that, you will need to wait for any openings of IPOs, FPOs, mutual funds, debentures, or bonds. You can check for openings through various news portals, but make sure such portals update regularly.
Any company which manages your demat account is called depository participant (DP) holder. The DP holder will provide you, the beneficial owner (BO), your beneficial owner identification (BOID) number, which is a unique 16-digit identification number. Normally, a DP holder charges Rs 100 to 150 annually for the management of the demat account.

Investing in share market.

In order to invest in the share market, we will tell you the step-by-step process after which you can be able to be an investor.
First, you will need a bank account, you can open an account as per your convenience but make sure that the company provides Applications Supported by Blocked Amount (ASBA) service.
The second thing you will need is a dematerialised account, simply known as a demat account. Most of the commercial banks in Nepal provide demat account services. Thus, if you have a bank account, you can apply for the demat account which will hold your shares. Besides that, other stockbroker companies also have demat account facilities. If you get dividends from the company you have invested upon, you will receive that in your demat account.
Obtain Meroshare login credentials from the DP holder. You will need to fill a different form for the credentials. Besides, you will also need your customer reference number (CRN), which will also be provided to you by the DP holder. Once you obtain it, you can log in to Meroshare platform from here.
Once you are able to log in to the Meroshare through the web portal, you are ready to invest in the primary market. For that, you will need to wait for any openings of IPOs, FPOs, mutual funds, debentures, or bonds. You can check for openings through various news portals, but make sure such portals update regularly.
Any company which manages your demat account is called depository participant (DP) holder. The DP holder will provide you, the beneficial owner (BO), your beneficial owner identification (BOID) number, which is a unique 16-digit identification number. Normally, a DP holder charges Rs 100 to 150 annually for the management of the demat account.

All About Share market in Nepal

Of late, the public interest in the share market in Nepal is steadily on the rise. At least in Kathmandu, observe people discussing anything, there must be one or two or more persons interested in the share market. But, what is it anyway?
A share, basically, is a unit of the ownership of a company. So buying or selling shares means you are buying or selling the partial ownership of the company. Share market, or the stock market, is where you can buy or sell shares. Usually, public companies issue shares for the public in order to raise their capital, but, besides shares, other instruments like debentures or bonds, and mutual funds are traded in the stock market.
As a shareholder, you can earn a part of the profits earned by those companies through dividends. Although share trade is an exciting opportunity to earn actively or passively, it is risky at the same time as investors may have to bear the loss should the business fail to perform. Thus, as a beginner, it is important that you need to understand the market well before investing your money on shares.
So, here we have for you the basic ideas on the share market’s operation in Nepal.

How to operate Meroshare account?

First, you will need to enter your login credentials including your DP holder, your user ID, and your password.

Then, you enter your dashboard once you log in. Now, you are able to see the values of your shares, opening, and closing IPOs and FPOs, and other basic details.

In order to apply for any of the openings, you need to go to My ASBA on the menu bar where you can get detailed information on offered openings.
Go to the ‘Apply for Issue’ tab on the page, open the details of the IPOs/FPOs, and enter the number of shares you would like to buy, enter your CRN number and apply for the shares.
If the openings are undersubscribed, the company issuing the IPOs/FPOs may reopen or extend their closing date. But, if such openings are oversubscribed, i.e if the number of applications is higher than allocated, shares will be distributed through a lottery.

Nepal Stock Exchange

Nepal Stock Exchange, in short NEPSE, is established under the Companies Act- 2006, operating under Securities Act- 2007. The basic objective of NEPSE is to impart free marketability and liquidity to the government and corporate securities by facilitating transactions in its trading floor through member, market intermediaries, such as broker, market makers etc. NEPSE opened its trading floor on13th January 1994.
Structure
The current paid-up capital of NEPSE is NRs.50,00,00,000. Government of Nepal, Nepal Rastra Bank,Employees Provident Fund,Rastriya Banijya Bank (former, Nepal Industrial Development Corporation),Laxmi Bank Ltd,Prabhu Bank Ltd  and other securities businessperson (brokers) are the shareholders of NEPSE. The following table shows the percentage of shareholdings by respective shareholders on the capital structure:

S. N.	Shareholders	Ownership (Percentage)	No. of Shares
1	Government of Nepal	58.66	2933122.5
2	Nepal Rastra Bank	14.60	729989.5
3	Employees Provident fund	10.00	500000
4	Rastriya Banijya Bank	6.14	306816
5	Laxmi Bank Ltd	5.00	250000
6	Prabhu Bank Ltd	5.00	250000
7	Others	0.60	30072

History
The history of securities market began with the floatation of shares by Biratnagar Jute Mills Ltd. and Nepal Bank Ltd. in 1937. Introduction of the Company Act in 1964, the first issuance of Government Bond in 1964 and the establishment of Securities Exchange Center Ltd. in 1976 were other significant development relating to capital markets.
Securities Exchange Center was established with an objective of facilitating and promoting the growth of capital markets. Before conversion into stock exchange it was the only capital markets institution undertaking the job of brokering, underwriting, managing public issue, market making for government bonds and other financial services. Nepal Government, under a program initiated to reform capital markets converted Securities Exchange Center into Nepal Stock Exchange in 1993.
Members
Members of NEPSE are permitted to act as intermediaries in buying and selling of government bonds and listed corporate securities. At present, there are 50 member brokers with 43 branches, who operate on the trading floor as per the Securities Act- 2007, rules and bye-laws. The broker house and its branches are expanded over 21 different cities of Nepal.

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