Calculate the exact friction cost on every NEPSE trade - tiered broker rates (0.27%-0.40%), SEBON regulatory levy, DP fee, and Capital Gains Tax.
Every transaction executed on the Nepal Stock Exchange entails regulatory, intermediary, and statutory costs. When you buy shares, you pay the purchase price plus broker commission, SEBON fees, and DP charges. When you sell shares, these transaction charges plus applicable Capital Gains Tax (CGT) are deducted from your gross proceeds before the net balance hits your bank account.
Frequent retail swing traders often celebrate small 2%-3% price gains without realizing that round-trip friction costs (buying fees + selling fees + DP fees + CGT) can consume 1.5% to 2.5% of the total trade. Understanding the exact fee schedule prevents you from overtrading and turning profitable moves into net losses.
SEBON mandates progressive broker commission: Up to NPR 50,000: 0.40% | NPR 50,001 to 5,00,000: 0.37% | NPR 5,00,001 to 20,00,000: 0.34% | NPR 20,00,001 to 1,00,00,000: 0.30% | Above NPR 1 Crore: 0.27%.
Multiply the transaction value by 0.015% (SEBON fee). Add flat NPR 25 for CDSC/DP settlement charges per company.
Buying Cost = Share Price × Quantity + Broker Commission + SEBON Fee + NPR 25 DP Fee. This total becomes your official WACC (Weighted Average Cost of Capital) in MeroShare.
Selling Net = (Gross Sale Value) − Broker Commission − SEBON Fee − NPR 25 DP Fee − CGT. If you make a capital gain, CGT is 5% (if holding > 365 days) or 7.5% (if holding ≤ 365 days).
| Transaction Value Slab | Broker Commission Rate | Commission on Maximum Slab Value | Effective Friction Rate |
|---|---|---|---|
| Up to NPR 50,000 | 0.40% | NPR 200 (on NPR 50,000) | ~0.46% (including SEBON + DP) |
| NPR 50,001 - NPR 5,00,000 | 0.37% | NPR 1,850 (on NPR 5,00,000) | ~0.39% |
| NPR 5,00,001 - NPR 20,00,000 | 0.34% | NPR 6,800 (on NPR 20,00,000) | ~0.36% |
| NPR 20,00,001 - NPR 1,00,00,000 | 0.30% | NPR 30,000 (on NPR 1 Crore) | ~0.32% |
| Above NPR 1,00,00,000 (1 Crore+) | 0.27% | Progressive | ~0.29% |
In Nepal, Capital Gains Tax on secondary market equity trading is treated as a final withholding tax for individual retail investors. The Finance Act divides holding periods strictly at 365 days. If you sell a share on day 364, you pay 7.5% on net profits; if you wait until day 366, your tax drops to 5% - saving 33% in tax liability. For institutional investors, CGT is 10%.
Binita bought 100 shares of a bank at NPR 300 (total NPR 30,000) and sold them 6 months later at NPR 330 (total NPR 33,000). She expected an exact NPR 3,000 profit.
She calculated the full friction: Buy commission (0.40% = NPR 120), SEBON buy (NPR 4.50), DP buy (NPR 25) = Total buy cost NPR 30,149.50. Sale commission (0.40% = NPR 132), SEBON sell (NPR 4.95), DP sell (NPR 25). Gross profit = NPR 2,688.55. Short-term CGT (7.5%) = NPR 201.64. Net profit credited = NPR 2,486.91.
Goal & Dilemma: Selling NPR 100,000 worth of shares purchased yesterday after a minor 2% price increase.
Quantity of shares sold multiplied by selling price.
Quantity of shares bought multiplied by purchase price.
Tiered commission (0.27% to 0.40%) on purchase and sale transactions.
NPR 25 charged on buy + NPR 25 charged on sell.
5% (holding > 365 days) or 7.5% (holding <= 365 days) applied only on net capital gain.
Buy NPR 1,00,000, sell at NPR 1,20,000 after 400 days. Broker fees = 0.37% * 100K + 0.37% * 120K = NPR 370 + 444 = NPR 814. SEBON fees = 0.015% * 220K = NPR 33. DP fees = NPR 50. Net gain before tax = NPR 19,103. Long-term CGT (5%) = NPR 955.15. Final in bank = NPR 18,147.85.
Selling shares on Day 360 instead of waiting for Day 366.
Holding for 366 days reduces your Capital Gains Tax from 7.5% to 5.0%.
Buying micro-lots of 10 shares across multiple transactions.
Consolidate purchases into larger lots to minimize the impact of the flat NPR 25 DP fee.
Forgetting that CGT is only charged on profitable trades.
If you sell at a loss, your Capital Gains Tax is NPR 0; only broker, SEBON, and DP fees apply.
Yes. When you calculate WACC in MeroShare and confirm your holding period, TMS automatically calculates and withholds CGT before transferring your payout.
No. The fees are strictly limited to Broker Commission, 0.015% SEBON fee, NPR 25 DP fee, and CGT on profit. No other charges can legally be levied.
Under SEBON rules, the minimum broker commission per transaction is NPR 10, even if the percentage calculation yields a lower number.
Broker commission on NEPSE is progressive: 0.36% for transactions up to NPR 50,000; 0.33% from NPR 50k to 5 Lakhs; 0.30% from 5L to 20L; 0.27% from 20L to 1 Crore; and 0.24% above 1 Crore.
Under the Income Tax Act, individual investors holding shares for less than 365 days pay 7.5% CGT, while those holding for 365 days or longer pay a concessional rate of only 5.0% CGT.