How to Trade in Nepal's Secondary Market: A Complete Step-by-Step Guide (Expert Level)

If you already understand what NEPSE is and want to actually start buying and selling shares, this guide walks you through the real process — the same one used by active traders, explained in plain, simple English.

What Is the "Secondary Market"?

The secondary market is where you buy and sell shares of companies that are already listed on NEPSE — as opposed to the primary market, where you apply for brand-new IPOs. Once a company lists, its shares move between investors every trading day, and prices go up or down based on demand.

You can only trade companies listed on NEPSE, and the exchange is open Sunday to Thursday, 11:00 AM to 3:00 PM, closed Fridays, Saturdays, and public holidays.

The 3 Accounts You Need Before You Trade

Think of these as three linked tools, each with one job:

Account	Purpose	Typical Cost
Demat Account	Your digital share locker — holds your shares electronically. Gives you a BOID number.	Rs. 100–200/year
MeroShare	Portal to apply for IPOs and view your portfolio	~Rs. 50/year
Broker / TMS Account	Your actual trading desk — this is where you place buy/sell orders	Free to open

All three are linked through your BOID number, issued when you open your Demat account.

Step-by-Step: From Zero to Your First Trade

Step 1 — Open a Demat Account

Visit a bank or a broker (called a "DP" — Depository Participant) and open a Demat account. This gives you a BOID number, which is your permanent share-holder ID in Nepal's system.

Step 2 — Get a CRN Number

Go to your bank's C-ASBA department and request a CRN (Customer Registration Number). This links your bank account to your Demat account so money can move automatically when you buy or sell shares.

Step 3 — Open a MeroShare Account

Use your BOID and CRN to register on MeroShare. This is where you'll apply for IPOs and can view your current share holdings.

Step 4 — Choose a Broker and Open a TMS Account

This is the step that's specific to secondary market trading. There are around 50 licensed brokers in Nepal — pick one near you or one with a good online platform. Contact them to open a TMS (Trade Management System) account.

You'll need to visit the broker's office once to complete KYC (identity verification) in person — this step can't be skipped, even for online trading. Once your KYC is verified, the broker sends your TMS username and a password-reset link to your email.

Step 5 — Set Your Password and Log In

Open the TMS login link, click "Forgot Password," and set a new password. You now have full access to NEPSE's online trading system.

Step 6 — Place Your First Buy or Sell Order

Inside TMS, you can:

• Search for the company's stock symbol (e.g., NABIL, SBL, SHIVM)
• Enter the quantity and price you want to buy or sell at
• Submit the order during market hours (11 AM–3 PM)
• Watch the order book — your order gets matched with a counter-party at the exchange level

Understanding the Costs (Don't Skip This)

Every trade comes with a few charges layered on top of the share price:

• Broker commission — up to 0.40% of transaction value
• DP charge — a small fee for using your Demat account
• SEBON fee — a small regulatory fee
• Capital Gains Tax (CGT) — around 5% on long-term profits (rates differ for short-term)

Before placing a real trade, it helps to calculate your actual break-even price after all these fees — a Rs. 2 gain per share can turn into a loss once commission and tax are subtracted.

Settlement: When Do You Actually Get Your Money or Shares?

Nepal follows a T+2 settlement cycle — meaning if you sell shares today, the money reaches your bank account two working days later. Similarly, shares you buy today appear in your Demat account two working days later, not instantly.

Expert-Level Tips for Trading Smart

1. Don't chase green candles — a stock that's up 8% today can correct sharply tomorrow. Beginners often buy at the peak of a rally.
2. Watch sector indices, not just the main index — Banking, Hydropower, and Finance sub-indices often move differently from the overall NEPSE index.
3. Understand circuit breakers — NEPSE halts trading temporarily if the index falls 4%, then again if it drops further, protecting you from panic-driven crashes.
4. Track breadth, not just the index number — if the index is up but more stocks are falling than rising, the "advance/decline" ratio tells you sentiment is actually weak underneath.
5. Never trade all your capital on one stock — spread across 3–5 companies in different sectors to reduce risk.

Common Mistakes First-Time Traders Make

• Skipping KYC verification and wondering why online trading doesn't work
• Not checking brokerage + tax costs before calculating expected profit
• Panic-selling during a circuit break instead of waiting for the market to stabilize
• Ignoring settlement timing (T+2) and assuming funds are available instantly

Frequently Asked Questions

Q: What is the minimum amount needed to start trading in NEPSE?

There's no official minimum — you can buy as little as 1 share (called a "kitta") of most companies. In practice, most brokers recommend starting with at least Rs. 10,000–20,000 so brokerage and fees don't eat too much into your capital.

Q: Which is the best broker in Nepal?

There's no single "best" broker — it depends on your priorities. Some traders pick based on a smooth mobile TMS app, others based on how close the branch office is (useful for the in-person KYC step), and others based on how responsive the broker is during high-volume trading days.

Q: Can I trade NEPSE from outside Nepal?

Non-resident Nepalis (NRNs) can invest under specific SEBON rules, but the account-opening process is more involved and usually requires additional documentation through the bank. Regular foreign nationals currently cannot trade directly on NEPSE.

Q: How long does it take to open all the required accounts?

If your documents (citizenship, photo, bank account) are ready, the whole process — Demat, CRN, MeroShare, and TMS — typically takes about a week from start to finish.

Q: What happens if I place an order and no one buys/sells at my price?

Your order stays pending in the order book until it either matches a counter-order at your price or you cancel it. Orders don't expire immediately — check your broker's rules on how long unfilled orders remain active.

Q: Is NEPSE trading taxed even on small profits?

Yes — capital gains tax applies regardless of profit size, though the rate differs for shares held short-term versus long-term. There's no tax-free threshold for share trading gains in Nepal.