Educational Academy • Beginner to Advanced

NEPSE & Stocks

The Nepal Stock Exchange (NEPSE) is Nepal’s only equity marketplace. While millions apply for IPOs through MeroShare, very few understand how the secondary market functions, how brokers execute trades via TMS, how settlements clear through CDSC, and how to value a company fundamentally. This path cuts through market rumors and teaches you how to open accounts, apply for IPOs, analyze financial statements, navigate broker TMS platforms, and invest with discipline.

Lessons: 8
Duration: 5 Hours
Level: Beginner to Advanced
Updated: Bhadra 2081 / Sep 2026
Guides: 5
Calculators: 2
1. What is this?

Definition & Concept

NEPSE is the regulated national stock exchange where public companies in Nepal trade their equity shares.

2. Why is it important?

Practical Importance

Equities historically offer the highest long-term growth in Nepal, but participating blindly without technical or fundamental literacy leads to devastating capital losses.

3. How does it work in Nepal?

The Nepal Context & Regulatory Reality

All trades in Nepal are routed through registered Brokers (TMS), settled in Demat accounts via CDSC, and funded via connectIPS and commercial bank accounts.

Learning Roadmap

Structured Learning Journey

Follow the progressive milestones from core foundations to advanced applications in Nepal.

01
Step 01

Demat & MeroShare Setup

02
Step 02

Analyzing & Applying for IPOs

03
Step 03

Broker Account & TMS Order Placing

04
Step 04

Broker Commissions & SEBON Fees

05
Step 05

Reading Company Financials (EPS/BVPS)

06
Step 06

Bonus Shares vs. Cash Dividends

07
Step 07

Right Shares & Price Adjustment Math

08
Step 08

Fundamental Valuation Frameworks

Module 01

Accounts & The IPO Ecosystem

Demat, CRN, MeroShare, and applying for primary issues in Nepal.

38 min 2 Lessons
01
Tutorial · 20 min · Beginner

Setting Up Demat, MeroShare & CRN in Nepal

Step-by-step account opening with a bank or merchant banker, avoiding common verification errors.

Key Takeaway: Demat holds your shares digitally; MeroShare is the portal; CRN verifies your bank account for C-ASBA.
02
Guide · 18 min · Beginner

How to Analyze and Apply for an IPO on MeroShare

Evaluating the prospectus, promoter holding, credit rating (ICRA/CareNP), and ASBA application mechanics.

Key Takeaway: Always check net worth per share and credit ratings before applying; understand the 10 kitta lottery rule.
Prerequisites: nep-1
Recommended Next Steps Next up: Secondary Market Mechanics & Broker TMS
Recommended Guide
Complete MeroShare Guide
14 min
Recommended Calculator
Share Calculator
Open Calculator
Key Terms to Master
Demat MeroShare CRN IPO
Module 02

Secondary Market Mechanics & Broker TMS

Placing orders, understanding limits, broker commissions, and CDSC clearing.

48 min 2 Lessons
03
Tutorial · 26 min · Intermediate

Opening a Broker Account and Navigating TMS

Understanding limit vs. market orders, collateral management, trading hours, and matching engines.

Key Takeaway: Deposit collateral via connectIPS; use Limit orders rather than Market orders to avoid slippage.
Prerequisites: nep-1
04
Reference · 22 min · Intermediate

Broker Commissions, SEBON Fees, and DP Charges in Nepal

Full fee breakdown from gross trade price to net bank deposit, including capital gains tax deductions.

Key Takeaway: Broker commission is tiered (0.24% to 0.36%); SEBON fee is 0.015%; DP fee is NPR 25; CGT is 5% (long-term) or 7.5% (short-term).
Prerequisites: nep-3
Recommended Next Steps Next up: Fundamental & Technical Literacy
Recommended Guide
Complete TMS Guide
18 min
Recommended Calculator
NEPSE Share & CGT Calculator
Open Calculator
Key Terms to Master
TMS Broker SEBON Capital Gain
Module 03

Fundamental & Technical Literacy

Reading quarterly reports, PE ratios, and avoiding emotional trap cycles.

54 min 4 Lessons
06
Case Study · 24 min · Intermediate

Dividend Yield vs. Capital Gains in NEPSE

Bonus shares (Stock Dividend) vs. Cash Dividend mechanics and book closure price adjustment rules.

Key Takeaway: Bonus shares increase total unit count but adjust market price proportionally on book closure day.
07
Guide · 12 min · Intermediate

Right Shares in NEPSE: Ratio, Eligibility & Price Adjustment Math

How right issues work, checking eligibility via MeroShare, applying at par value (Rs. 100), price adjustment formulas, and unsubscribed auction shares.

Key Takeaway: Right shares require cash subscription at par (Rs. 100); market price adjusts downward on book closure; unsubscribed shares enter competitive bidding auctions.
Prerequisites: nep-3
08
Lesson · 14 min · Advanced

Fundamental Analysis of NEPSE Companies: Beyond P/E Ratio

In-depth valuation models for banks and hydro companies: RoE, Net Interest Margin (NIM), Non-Performing Loans (NPL), Debt-to-Equity, and Project Life cycle.

Key Takeaway: Never evaluate a stock solely on low P/E; check RoE (>15%), NPL (<3% for commercial banks), and reserve strength; hydro valuation requires checking remaining PPA years.
Prerequisites: nep-5
Recommended Next Steps Next up: Mutual Funds & Indirect Investing
Recommended Guide
Complete CDSC Clearing Guide
15 min
Recommended Calculator
CAGR Calculator
Open Calculator
Key Terms to Master
EPS BVPS Dividend Book Closure
Glossary

Key Financial Terms in This Domain

Essential definitions and terminology you will encounter across lessons and guides:

Resources

Practical Worksheets & Templates

Handcrafted worksheets, spreadsheets, and decision templates designed for Nepal:

Interactive Checklist
320 KB

First-Time NEPSE Investor Checklist

A step-by-step printable and interactive checklist covering Demat opening, C-ASBA, broker selection, and TMS trading.

18 Actionable StepsC-ASBA & CRN GuidePrint / Save as PDF
Bilingual Glossary
490 KB

Financial Jargon Pocket Reference Guide

50+ essential Nepali stock market and banking terms with clear two-sentence explanations.

Searchable DictionaryNEPSE, Banking & TaxEnglish & Nepali Defs
FAQ

Frequently Asked Questions

Practical answers to common financial dilemmas faced by learners in Nepal.

NEPSE trades Sunday through Thursday from 11:00 AM to 3:00 PM NPT. The pre-open session takes place from 10:30 AM to 10:45 AM. The market remains closed on Fridays, Saturdays, and official public holidays declared in Nepal.

Electronic Delivery Instruction Slip (EDIS) is the mandatory digital authorization you must submit through MeroShare after selling shares via your broker TMS. You must execute EDIS before 6:00 PM on the next trading day (T+1) to avoid a 20% close-out penalty.

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