A SHORT PRESENTATION ON THE TOPIC

“SHARE MARKET OF NEPAL”

PRESENTED BY: BISHAL LUITEL

WHAT IS SHARE?

 A unit of ownership of a company, with

companies selling shares to raise capital and
shareholders buying shares to earn dividends.
 A unit of share is called as “Kitta” in Nepal. 
Most of company’s face value of share is
Rs.100 & few companies have Rs.10.
TYPES OF SHARE

PROMOTER SHARE
Promoter share are capital of company which are invested by founder of company
at starting period. During the company registration they define the capital
structure; how much will be authorized capital, issued capital & paid up capital.
They further defined how much will be invested by founder & how much will be
collected from public.

ORDINARY OR PUBLIC SHARE

Ordinary share are portion of capital which are raise by issuing share to
general public after the establishment of company. Shares collected
from public to fulfill the financial needs of company or for expansion of
company operation are public shares.
WHAT IS SHARE MARKET?
 Share market is market where shares are traded. One can buy & sell the shares in the share
market as per the needs & requirement. Share markets are the main source for companies
to raise their capital/funds. Share market provides opportunities to become owner of any
company at any times. Also investor can buy the part of ownership in the growing business
& grow their wealth. Investors earn a part of profit for holding ownership as a dividend &
take risk to bear losses if company fail to perform well.
 Nepal stock Exchange (NEPSE) is only stock market of Nepal. NEPSE provides platform to
buy & sell  stocks through 50 brokers & their 47 RWS. Broker offices are located in
Kathmandu & their Remote Work Station (RWS) in different major cities of country.
TYPES OF SHARE MARKET

 PRIMARY MARKET
Primary market is first steps for company to come in the share market. It is also called first hand
market or IPO market. Hereby, company issue shares for general public to raise funds/capital.
General public also get chance to become owner of grown company.  Company’s sole decision
can’t sell shares to public. IPO/FPO is to be approved from the annual general meeting of
company. Then company will choose issue manager for IPO (Initial public offering) because
company can’t sell its shares by own. Than, company apply for the approval from Security
board for the issue. After the approval from Security board, company must publish notice
regarding details of IPO to general public from national media.
 SECONDARY MARKET
Secondary market is market where buying & selling of listed shares are done by investors through
brokers. Numbers of transaction are made by buyers & sellers with helps of brokers. Buyers
buy shares at prevailing price. Shares allotted in primary market (IPO/FPO) must be sells from
secondary market. Secondary market offers chance to buy & sell shares at any time any
quantities where as primary market is for only one time. Buyers of share become owner &
shareholders. They have right to claim to profit & obliged to losses & debt.
HOW TO APPLY IPO/FPO?
 After company publish notice regarding details of IPO/FPO to general public from
national media. You are eligible to apply for IPO/FPO within given time period,
Requirement for applying IPOs
 Open bank account (Banks must be connected with C-ASBA)
 Open DEMAT Account (you can open DEMAT account from Banks, Brokers,
merchant banker, etc). It consists of 16 digits. Some bank may charge for it and
some provide it for free.
 Again visit the bank where you opened your account & Fill up C-ASBA
registration form to get CRN number (C-ASBA Registration Number) from the
bank. The bank will link your bank account with DEMAT account into CDS &
clearing Ltd system & give you CRN number.
 Again visit the office where you opened DEMAT account take Mero share user
& password (For online application). It cost Rs.50 annually.
 Note: Bank account is for saving or keeping your money. DEMAT account is
for recording or keeping share of different company.
PROCESS TO APPLY FOR IPO
 After having Bank account, DEMAT Account & CRN Number you
can apply for any IPO/FPOs in the market. After implantation of C-
ASBA, one should not need to run here & there for applying
IPO/FPOs as before. You can apply from your bank or online
application through internet.

PROCESS FOR ONLINE APPLICATION

1. Login to mero share.
2. Click on “MY ASBA”, you will get all the list of issuance like IPO,
FPO, right shares.
3. Then, click on “Apply for Issue”, select any issue you want to
apply.
4. Click on Apply bottom. Fill up the details & submit.
BUY AND SELL SHARE IN
SECONDARY MARKET
 To buy and sell share in secondary market. You
must have to register yourself in nearby broker.
NEPSE provides platform to buy & sell  stocks
through 50 brokers & their 47 RWS (Remote
Work Station).
 After having account in broker you can buy and
sell share by visiting the broker office. Nepal stock
exchange remains open for 4 hours per day & 5
days in a week. Market open on Sunday to
Thursday from 11:00 AM to 3:00 PM.
Any Question?

THANK YOU