From online KYC submission to setting collateral via connectIPS, placing limit orders, and completing T+2 EDIS share transfers.
A brokerage account gives retail investors direct secondary market access to buy and sell listed shares, debentures, and close-ended mutual funds on the Nepal Stock Exchange (NEPSE). Trading is executed through NEPSE's web-based Trade Management System (TMS), which connects your broker, commercial bank account, CDSC clearing house, and MeroShare Demat repository.
Applying for IPOs is passive, but secondary market trading requires active execution. Hundreds of beginners in Nepal make severe, costly mistakes: placing market orders that execute at unfavorable spike prices, failing to upload collateral, or forgetting to execute EDIS on MeroShare after selling - incurring a mandatory 20% cash penalty payable to the buyer.
Visit the online portal of any licensed broker (e.g., tms58.nepsetms.com.np). Fill in personal details, upload citizenship photo, Demat confirmation slip, bank cheque photo, and complete video KYC.
Log in to TMS. Go to "Fund Management" → "Collateral Management" → "Load Collateral". Select connectIPS, enter amount (e.g., NPR 25,000), and approve the payment. Your trading limit is typically 4x your loaded collateral (NPR 1,00,000 buying power).
Go to "Order Management" → "Buy/Sell". Enter company ticker (e.g., NABIL, SHIVM), order type "Limit", quantity, and your target price. Never use "Market" orders in volatile opening minutes.
If you buy, pay remaining 75% funds via connectIPS on T+2. If you sell, log into MeroShare within 24 hours, go to "My EDIS" → "Transfer Shares", select the sold scrip, and confirm OTP. This delivers the shares to the buyer.
| Stage | Buyer Workflow | Seller Workflow |
|---|---|---|
| Pre-Trade Preparation | Load 25% Collateral via connectIPS into TMS | Ensure shares are settled and visible in MeroShare Demat |
| Order Execution | Place Limit Buy order on TMS (e.g., 50 shares @ NPR 450) | Place Limit Sell order on TMS (e.g., 50 shares @ NPR 450) |
| Trade Day (T+0) | Order matched; trade confirmation SMS/Email received | Order matched; trade confirmation SMS/Email received |
| Day T+1 | Receive net debit advice bill from broker | Log into MeroShare → My EDIS → Calculate WACC → Transfer Shares |
| Settlement Day (T+2) | Pay remaining 75% trade amount; shares credited to Demat | Broker transfers net sales proceeds (minus fees & CGT) to bank account |
Nepal's stock market operates Sunday through Thursday, 11:00 AM to 3:00 PM. Pre-open session runs from 10:30 AM to 10:45 AM. The 20% auction penalty (Bole-Bhaag) is rigidly enforced by CDSC bylaws - if you sell shares you do not own, or if you forget to complete EDIS on MeroShare before clearing, 20% of the total transaction amount is deducted from your bank account and credited directly to the buyer as compensation.
Aashish sold 100 shares of a hydropower company for NPR 50,000 on TMS. He thought the broker would automatically deduct the shares from his Demat. He forgot to check MeroShare.
Because he did not execute "My EDIS" transfer on MeroShare before T+2 clearing, CDSC declared a "Closeout Short Delivery". Aashish was penalized 20% of the trade value (NPR 10,000), reducing his sales payout to NPR 40,000. He learned never to sell without immediately setting a calendar reminder to execute EDIS on MeroShare that same evening.
Goal & Dilemma: Executing a share sale of NPR 100,000 without incurring SEBON closeout penalties.
Amount deposited into broker TMS via connectIPS (counts 1:1).
Standard SEBON/broker multiplier allowing trading up to 4x cash collateral.
Number of units purchased.
Per-share execution price in Nepalese Rupees.
Deposit NPR 25,000 cash collateral in TMS. Buying power = 25,000 * 4 = NPR 1,00,000. Buy 200 shares at NPR 400 = NPR 80,000 trade value. Broker commission (0.37%) = NPR 296, SEBON fee (0.015%) = NPR 12, DP fee = NPR 25. Total net payable = NPR 80,333.
Forgetting to do MeroShare EDIS transfer after selling shares.
Always log into MeroShare the same evening you sell and transfer the shares.
Using "Market Orders" during volatile morning sessions.
Always place "Limit Orders" where you specify the maximum price you are willing to pay.
Trying to withdraw non-cash share collateral as bank cash.
Only cash loaded via connectIPS can be refunded; share-based collateral cannot be withdrawn as cash.
Go to TMS → "Fund Management" → "Collateral Management" → "Collateral Refund". Submit a refund request. The broker processes and transfers it back to your bank account via connectIPS within 24-48 hours.
Regular continuous trading is open from 11:00 AM to 3:00 PM, Sunday through Thursday. Pre-open matching occurs between 10:30 AM and 10:45 AM.
Yes. You can open accounts with multiple brokers simultaneously, or close your current broker account once all financial dues and share deliveries are settled.
Under SEBON and CDSC clearing bylaws, default in share delivery triggers an automatic closeout. The exchange charges a 20% penalty on the total sale value, which is deducted from your broker account.
Collateral is a cash or bank guarantee deposit (typically 1:4 ratio) required before placing buy orders. Any unutilized cash collateral can be refunded back to your bank account upon request.