Step-by-Step Guide: How to Open a Demat Account in Nepal
If you want to invest in the Nepal Stock Exchange (NEPSE), the first step is to open a Demat account. A Demat account allows you to hold and trade shares in electronic form, making the process safe, fast, and convenient. Here’s a simple guide for beginners.
1. Understand What a Demat Account Is
A Demat account (short for Dematerialized account) is like a bank account, but instead of money, it holds shares, bonds, and securities electronically. It eliminates the need for physical share certificates and reduces the risk of loss, theft, or damage.
2. Choose a Depository Participant (DP)
In Nepal, Central Depository Services (CDS) regulates Demat accounts. To open an account, you need to choose a Depository Participant (DP), which is usually a bank, financial institution, or stockbroker authorized by CDS.
Popular DPs in Nepal include:
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Nabil Bank
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Nepal Investment Bank
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Himalayan Bank
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NIBL Ace Capital
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Siddhartha Capital
3. Prepare the Required Documents
To open a Demat account, you generally need:
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Valid Citizenship/Passport/Voter ID
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PAN or Tax Identification Number (if applicable)
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Bank Account Details (for linking and fund transfer)
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Passport-sized photo
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Email ID and Mobile Number
4. Fill the Application Form
Visit the DP’s branch or their website to get the Demat account application form. Fill in all required details carefully and attach the necessary documents. Some banks also allow online application through their portal.
5. In-Person Verification (IPV)
After submitting the application, a DP representative will verify your identity in person or online. This is a mandatory step for regulatory compliance.
6. Receive Your Demat Account Details
Once your application is approved, you will receive:
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Demat Account Number (BO ID)
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Login credentials for online platforms like MeroShare
7. Start Trading Using MeroShare
With your Demat account ready, you can now:
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Buy and sell shares on NEPSE
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Apply for IPOs and FPOs
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Monitor your portfolio and corporate actions
Tip: Link your bank account for smooth fund transfers.
Conclusion
Opening a Demat account in Nepal is simple if you follow these steps. Once your account is ready, you can start investing in the stock market safely and efficiently. Start today and take your first step toward financial growth!
Read the Article in Nepali:
A Demat account (short for Dematerialized account) is an electronic account used to hold financial securities like shares, bonds, and mutual funds in digital form.
It eliminates the need for physical share certificates, making trading safer, faster, and more convenient.
In Nepal, a Demat account is essential for buying and selling shares on the Nepal Stock Exchange (NEPSE) and for applying to IPOs through the MeroShare platform.