The definitive handbook for selecting a broker, online TMS KYC registration, loading collateral via connectIPS, placing limit orders, and completing T+2 settlement without closeout penalties.
The Nepal Stock Exchange (NEPSE) Trade Management System (TMS) is the centralized web portal that connects retail investors to licensed stockbrokers (Broker 1 through Broker 90+). Prior to TMS, stock trading in Nepal required physical visits to broker offices and manual paper slips. Today, investors can deposit collateral, view live market depth, execute buy and sell orders, and manage trade settlements directly from their laptop or smartphone.
Nepal currently has over 80 licensed stockbrokers regulated by the Securities Board of Nepal (SEBON). When choosing a broker, prioritize customer service responsiveness, prompt collateral refunds, and efficient payout cycles. You can apply for a new TMS account 100% online through the respective broker's portal (e.g., nepsealpha.com/tms-links). Provide your Citizenship scan, PAN, 16-digit Demat BOID, bank account details with a cancelled cheque, and an emergency contact. Upon verification (typically 24-48 business hours), your client code and temporary TMS login credentials will be emailed to you.
Ensure your full name, father's name, and citizenship number match exactly across your Bank, Demat, and TMS applications to prevent automated rejection.
Under SEBON regulations, brokers enforce a risk-management margin. Before placing any buy order on TMS, you must deposit collateral. Navigate to 'Fund Management' -> 'Collateral Management' -> 'Load Collateral'. Select connectIPS or bank transfer, input the desired rupee amount, and authenticate. Once approved, TMS grants you a buying power typically equal to 1:1 or up to 1:4 of your cash collateral depending on broker margin policies. Remember: Collateral is not a payment for shares; it is a security deposit that frees up buying limit.
Loading collateral does NOT pay for the shares you buy. After your buy order executes, you must separately settle the net purchase amount via connectIPS or fund transfer within the T+2 window.
On the TMS dashboard, opening the Market Depth (बजार गहिराइ) window for any listed stock reveals the top 5 buy bids and top 5 sell asks in real time. The 'Total Buy Quantity' versus 'Total Sell Quantity' ratio acts as an immediate gauge of institutional demand and retail supply. Never place an order blindly based on the Last Traded Price (LTP); always inspect the bid-ask spread to avoid overpaying during illiquid market sessions.
In thinly traded debentures or small-cap hydro stocks, the gap between the highest buyer and lowest seller can be 2-3%. Always use limit orders to control execution price.
When placing an order in TMS, you specify Order Type (Limit Order is strongly recommended, where you set your maximum buy or minimum sell price), Quantity (number of shares in multiples of 10 for regular market), and Validity (Day Order remains active until market closes at 3:00 PM; Immediate or Cancel / IOC cancels unfulfilled units immediately). During the Pre-Open Session (10:30 AM - 10:45 AM), orders determine the opening price within a +/- 5% range.
If you hold fewer than 10 shares (e.g., from bonus share fractional allocations), you must trade them in the dedicated Odd-Lot session between 10:30 AM and 10:45 AM or during continuous trading under Odd-Lot order selection.
To prevent panic selling and speculative mania, NEPSE enforces strict circuit breaker rules on both the index and individual scrips. An individual stock cannot fluctuate by more than +/- 10% from its previous day closing price. For the overall NEPSE index: a 4% movement in the first hour halts trading for 20 minutes; a 5% movement in the second hour halts for 40 minutes; and a 6% movement at any time halts trading for the remainder of the trading day.
Orders outside the +/- 10% daily upper and lower price bands are automatically rejected by the NEPSE matching engine.
NEPSE operates strictly on a T+2 settlement cycle (Trade Day + 2 clearing business days). When you sell shares, the shares must be electronically transferred from your Demat account to the clearing house (CDSC) via MeroShare EDIS (Electronic Depository Information System). Log into MeroShare, navigate to 'Purchase Source' (calculate WACC and holding period), then open 'EDIS' -> 'Transfer Shares', select the sold trade batch, and confirm with your 4-digit PIN before 10:00 AM on T+1 day.
If you fail to execute EDIS on time, or if you sell shares that are locked in pledge or not in your Demat, CDSC triggers an automated Closeout. You will be penalized a non-negotiable 20% penalty on the total trade value, deducted straight from your bank payout!
Every trade on NEPSE includes statutory costs. Broker commissions range on a declining tiered scale: 0.40% for trades up to NPR 50,000; 0.37% from 50k to 5 Lakhs; 0.34% from 5 Lakhs to 20 Lakhs; 0.30% from 20 Lakhs to 1 Crore; and 0.24% above 1 Crore. In addition, SEBON levies a regulatory charge of 0.015%, and DP charges NPR 25 per transaction. On profitable sales, Capital Gains Tax (CGT) is deducted: 5% for holdings held over 365 days (Long-Term), and 7.5% for holdings held for 365 days or less (Short-Term).
Selling a stock after 1 year drops your Capital Gains Tax rate by 33% (from 7.5% down to 5.0%), preserving substantial profit on long-term compounders.
Governed by the Securities Act 2063 and overseen by SEBON and NEPSE. All transactions are routed through CDSC clearing banks with connectIPS integration.
| Transaction Amount Slab | Broker Commission Rate | SEBON Fee | CDSC DP Charge |
|---|---|---|---|
| Up to NPR 50,000 | 0.40% of trade value | 0.015% | NPR 25 per sell order company |
| NPR 50,001 to NPR 5,00,000 | 0.37% of trade value | 0.015% | NPR 25 per sell order company |
| NPR 5,00,001 to NPR 20,00,000 | 0.34% of trade value | 0.015% | NPR 25 per sell order company |
| NPR 20,00,001 to NPR 1 Crore | 0.30% of trade value | 0.015% | NPR 25 per sell order company |
| Above NPR 1 Crore | 0.24% of trade value | 0.015% | NPR 25 per sell order company |
Wanted to purchase 150 units of commercial bank shares on NEPSE without overpaying or missing the settlement window.
Saurav loaded NPR 40,000 collateral via connectIPS, placed a Limit Buy Order at NPR 245 when LTP was NPR 248, saved NPR 450 on execution, and settled his net dues via connectIPS within 24 hours.
Calculate broker commission, SEBON fees, DP charges, WACC, and net profit after 5% or 7.5% capital gains tax.
You enter the closeout process. CDSC auctions the shares or penalizes you 20% of the gross sale amount, which is paid to the buyer as compensation.
Under T+2 settlement, brokers typically disburse funds via connectIPS to your registered bank account by the afternoon of the 2nd or 3rd working day.
No, intraday trading is not legally permitted on NEPSE. You must wait for shares to be credited to your Demat account (T+2) before you can sell them.
This guide is researched using primary regulatory notices from Nepal Rastra Bank, SEBON, CDSC, and IRD Nepal. Reviewed under our Editorial Policy & Research Standards.