By Wilson Shrestha · Updated 13 October 2026 (Ashwin 2083) · Facts checked against SEBON, NEPSE and CDSC notices
When I first wrote this guide in 2021, selling a share still meant visiting a broker’s office. In 2026 you can open every account you need, apply for IPOs, buy and sell shares entirely from your phone. But this has also been the busiest year for rule changes in a long time: a Monday–Friday trading week, a wider 15% price band, higher capital gains tax, a National ID requirement for Demat accounts, after-market orders on TMS, and a freeze on unrenewed Demat accounts.
This guide walks you through the whole journey in the right order, with the current costs, the new rules, and the mistakes that cost beginners real money.
Quick answer: to invest in NEPSE online you need four things, in this order:
- A bank account with mobile banking and ConnectIPS
- A Demat account (you get a 16-digit BOID). Your National ID (NID) number is now mandatory.
- MeroShare + CRN to apply for IPOs and to transfer shares (EDIS) after you sell
- A TMS account with a licensed broker to buy and sell listed shares
Yearly cost to keep accounts active: Rs. 150 (Rs. 100 Demat + Rs. 50 MeroShare). Most people go from zero to first trade in about a week.
What Changed in 2026
If you are following an older blog post or YouTube tutorial, it is probably missing at least some of these:
| When | Change | What it means for you |
|---|---|---|
| 6 April 2026 | NEPSE moved to a Monday–Friday trading week | The market is now closed on Saturday and Sunday, following the government’s two-day weekend. |
| 20 April 2026 (Baisakh 7) | Daily price limit widened from 10% to 15%; pre-open band from 2% to 5% | A stock can now rise or fall up to 15% in one day. Bigger moves, bigger risk. |
| 17 July 2026 (Shrawan 1) | Capital gains tax raised to 10% (≤365 days) and 7.5% (>365 days), now a final tax | Holding a share for more than a year still saves you a quarter of the tax. |
| 17 July 2026 (Shrawan 1) | National ID number mandatory for new Demat accounts and for KYC updates of old ones | No NID number = no new Demat account. |
| 1 August 2026 (Shrawan 16) | CDSC froze Demat accounts with unpaid annual fees and suspended their MeroShare | Your shares are safe, but you cannot transfer, sell or apply for IPOs until you pay. |
| 13 August 2026 | After-Market Orders (AMO) launched on TMS | You can place orders in the evening or early morning; they go to the market at the next open. |
| 26 August 2026 | SEBON directives on brokers | Brokers must keep client money in separate bank accounts and pay you within the T+2 settlement period. |
| 24 September 2026 | SEBON published a concept paper on intraday trading | Proposed only, for selected liquid stocks with a “buy first, sell later” model. It is not live yet. |
The Big Picture: 4 Accounts, 1 Journey
Most beginner confusion comes from not knowing which account does what. Each one depends on the one before it, so open them in this order:
After steps 1–3 you can apply for IPOs. After step 4 you can trade any listed share.
| Account | Opened with | You receive | Used for |
|---|---|---|---|
| Bank account | Any commercial or development bank | Account number, mobile banking, ConnectIPS | Paying for shares; receiving sale money and dividends |
| Demat | A Depository Participant (DP): a bank’s capital company or a broker | 16-digit BOID | Holding shares |
| MeroShare | CDSC, activated through your DP | Login (DP + username) and transaction PIN | IPOs, right shares, portfolio, WACC, EDIS |
| CRN | Your bank (C-ASBA member) | Customer Reference Number | Lets MeroShare block money in your bank for IPOs |
| TMS | Any licensed NEPSE stockbroker | Client code and TMS login | Secondary-market buying and selling |
Documents to Keep Ready
Scan or photograph these clearly. Online forms reject blurry uploads, and your name must match exactly across every document and account.
- Citizenship certificate (front and back)
- National Identity (NID) number — mandatory since Shrawan 1, 2083
- Recent passport-size photo and your signature on white paper
- A bank account in your own name
- Mobile number and email you actually use (OTPs and login details go here)
- Nominee details; PAN number if your broker asks for it
Step 1: Open a Bank Account With Mobile Banking and ConnectIPS
Any commercial bank works. What matters more than the bank’s name is that you have:
- Mobile banking, so you can see blocked IPO amounts and incoming sale proceeds.
- ConnectIPS access, which is how you load money into your TMS account.
- C-ASBA membership (all major banks are members), which lets MeroShare apply for IPOs from your account.
Tip: if your bank’s capital company is also a DP, you can often open the Demat, MeroShare and CRN together. Fewer institutions means fewer name-mismatch problems later.
Step 2: Open a Demat Account
Your Demat account is where your shares live. It is opened through a Depository Participant (DP) and registered with CDS and Clearing Limited (CDSC). Once approved, you get a 16-digit BOID. Nepal now has more than 80 lakh Demat accounts, so you are joining a very large investor base.
With most DPs, the online process looks like this:
- Open the DP’s online KYC / Demat form.
- Fill in personal, address, bank and nominee details, including your NID number.
- Upload citizenship, photo and signature.
- Tick MeroShare and C-ASBA/CRN on the same form if offered — it saves a second application.
- Pay the fee online and complete any video KYC the DP asks for.
- Receive your BOID by SMS or email, usually within a few working days.
No NID number? Start there. Since Shrawan 1, 2083 (17 July 2026), CDSC requires a National Identity Number to open a new Demat account. Existing account holders also need to add it when they update their KYC. Get your NID number first, or your application will stall.
Full details on choosing a DP, minors’ and NRN accounts, and common rejection reasons are in my separate guide: How to Open a Demat Account in Nepal: 2026 Step-by-Step Guide.
Step 3: Activate MeroShare
MeroShare is CDSC’s investor portal and app. If you ticked MeroShare when opening your Demat, login details arrive by SMS or email. Otherwise, request it from your DP and pay the Rs. 50 fee.
- Use only the official site meroshare.cdsc.com.np or the official MeroShare app.
- Select your DP, then enter your username and temporary password.
- Change your password and set a separate transaction PIN.
- Open My Details and confirm your name, BOID and bank are correct.
In MeroShare you can apply for IPOs, FPOs and right shares, see holdings and allotment results, update your purchase price (WACC), and transfer sold shares (EDIS). You cannot buy or sell listed shares there — that happens in TMS.
Step 4: Get Your CRN and Link Your Bank (C-ASBA)
The CRN (Customer Reference Number) comes from your bank, not CDSC. It authorises your bank account for IPO applications through C-ASBA. Request it through your bank’s online form, app or branch.
The first time you apply for an issue in MeroShare (My ASBA), select your bank, account and enter your CRN. MeroShare remembers it after that.
Milestone: with a bank account, Demat, MeroShare and CRN you can now apply for IPOs online.
How to Apply for an IPO on MeroShare
- Apply: My ASBA → Apply for Issue → choose the open issue → enter units → confirm with your PIN.
- Blocked: your bank blocks the amount (units × price). It is not debited yet.
- Allotment: if the issue is oversubscribed, units are allotted by lottery. Check under My ASBA → Application Report.
- Credit or release: allotted shares land in your Demat; otherwise the blocked money is released.
- General-public IPOs in 2026 typically have a minimum of 10 units (Rs. 1,000 at Rs. 100 face value). The maximum varies by issue, so read the notice.
- Apply once per BOID per issue. Duplicate applications are rejected.
- Keep the balance in your bank until results are published.
- An IPO is not guaranteed profit. Read the offer document before applying.
Step 5: Open a Broker (TMS) Account Online
To trade listed shares you need a client account with a licensed stockbroker, which gives you a login to NEPSE’s Trade Management System (TMS). Each broker’s TMS uses the format tmsXX.nepsetms.com.np, where XX is the broker number. See my NEPSE online trading page for broker TMS links.
- Open the broker’s TMS site and choose Online / Client Registration.
- Fill in personal, address, bank and BOID details.
- Upload citizenship, photo and signature, and accept the agreement.
- Complete any KYC verification the broker asks for.
- Receive your client code and TMS login by email.
Choosing a broker: all brokers work under the same SEBON-capped commission, so compare service instead — how quickly they respond, how fast they pay sale proceeds, and whether they have a branch near you. One BOID can be registered with more than one broker.
How to Buy Shares Online Through TMS
- Load funds (collateral) from your bank through ConnectIPS. Your buying limit is based on this balance.
- Find the stock by its symbol and check the last traded price and market depth.
- Place a limit order: choose Buy, enter quantity and the price you are willing to pay. Avoid chasing the price.
- Watch the order book. Orders can fill fully, partly or not at all; unfilled orders expire at day end.
- Receive shares in your Demat after settlement, visible in MeroShare’s My Portfolio.
NEPSE trading hours (Monday–Friday)
| Session | Time (Nepal) | What happens |
|---|---|---|
| Pre-open | 10:30 – 10:45 AM | Orders collected to find the opening price (±5% band) |
| Continuous trading | 11:00 AM – 3:00 PM | Live order matching |
| After-Market Orders | 5:00 PM – 10:00 AM | Orders queued for the next trading session |
The market is closed on Saturdays, Sundays and public holidays. NEPSE can change timings by notice, so check the session strip in your TMS.
Using After-Market Orders (AMO)
AMO is useful if you are busy during market hours or live abroad. Key rules:
- Your limit price must be within 15% above or below the previous closing price.
- At the open, an order is forwarded only if it is within 3% of the opening price.
- The system checks your cash (for buys) and Demat holdings (for sells) before forwarding.
- Each AMO is valid for one trading day and is cancelled if it does not execute.
Double-check prices before submitting, as modifying or cancelling AMOs is less flexible than regular orders.
How to Sell Shares Online (and Avoid the Close-out Fine)
Selling takes two systems: you sell in TMS, then release the shares in MeroShare. Skip the second part and your trade goes into close-out.
- TMS: choose Sell, enter symbol, quantity and limit price. Shares must already be in your Demat.
- MeroShare → My Purchase Source: confirm each lot’s purchase price and date. This sets your WACC and holding period, which decide your tax.
- MeroShare → My EDIS: select the sold scrip and quantity, enter your PIN and submit.
- Confirm the status shows transferred, then wait for T+2 settlement.
The close-out fine is 20%. If sold shares are not transferred in time, the seller pays a penalty of 20% of the close-out amount; a quarter of it goes to the government as tax and the rest to the buyer. On a Rs. 1 lakh sale, that is Rs. 20,000. In FY 2025/26 alone, CDSC recorded over 20,000 close-out cases. Do your EDIS the same day. Also note that EDIS is not available during a company’s book-closure period, so be careful selling just before a book closure.
What It Costs: Charges and Capital Gains Tax
1. Broker commission (on both buy and sell)
These SEBON rates have applied since Jestha 1, 2081 (14 May 2024) and are still current. Many brokers display the 0.306% and 0.243% slabs rounded as 0.30% and 0.24%.
| Trade value (per transaction) | Commission |
|---|---|
| Up to Rs. 50,000 | 0.36% (minimum Rs. 10) |
| Rs. 50,001 – 5 lakh | 0.33% |
| Rs. 5 lakh – 20 lakh | 0.306% |
| Rs. 20 lakh – 1 crore | 0.27% |
| Above Rs. 1 crore | 0.243% |
Rates are for equity shares; bonds and mutual funds have lower slabs.
2. Other charges
| Charge | Amount | When |
|---|---|---|
| SEBON transaction fee | 0.015% of trade value | Every buy and sell |
| DP charge | Rs. 25 per scrip, per transfer day | On share transfers (mainly when selling) |
| Demat annual fee | Rs. 100 / year | Every fiscal year |
| MeroShare | Rs. 50 / year | Yearly renewal |
| TMS account | Usually free | — |
| Capital gains tax | 10% or 7.5% of profit (individuals) | Only on profitable sales, deducted at settlement |
You can renew Demat and MeroShare together (Rs. 150) through eSewa, Khalti, ConnectIPS or your DP’s website.
3. Capital gains tax: before and after Budget 2083/84
| Holding period (individuals) | Until FY 2082/83 | From 17 July 2026 |
|---|---|---|
| 365 days or less | 7.5% | 10% |
| More than 365 days | 5% | 7.5% |
The new rate is a final tax on listed shares, so there is no further settlement in your annual return.
4. Worked example: Rs. 1 lakh in, Rs. 1.2 lakh out
You buy 100 shares at Rs. 1,000 and later sell at Rs. 1,200.
| Item | Buy (Rs.) | Sell (Rs.) |
|---|---|---|
| Trade value | 1,00,000 | 1,20,000 |
| Broker commission (0.33%) | + 330 | − 396 |
| SEBON fee (0.015%) | + 15 | − 18 |
| DP charge | — | − 25 |
| Total cost / proceeds before tax | 1,00,345 (WACC ≈ Rs. 1,003.45) | 1,19,561 |
| Taxable profit | 19,216 | |
| CGT if held ≤ 365 days (10%) | − 1,921.60 → net profit 17,294.40 | |
| CGT if held > 365 days (7.5%) | − 1,441.20 → net profit 17,774.80 | |
So a Rs. 20,000 price gain becomes roughly Rs. 17,300–17,800 in your pocket.
5. Why tiny trades are expensive
The Rs. 25 DP charge and Rs. 10 minimum commission are flat, so small trades lose a bigger share to fees. Sell-side costs (commission + SEBON fee + DP charge, before tax):
| Sale value | Total charges | % of trade |
|---|---|---|
| Rs. 2,000 | Rs. 35.30 | 1.77% |
| Rs. 10,000 | Rs. 62.50 | 0.63% |
| Rs. 50,000 | Rs. 212.50 | 0.43% |
| Rs. 1 lakh | Rs. 370 | 0.37% |
| Rs. 5 lakh | Rs. 1,750 | 0.35% |
Basic Analysis Before You Buy
Opening accounts is the easy part. Start with these numbers from each company’s quarterly report:
- EPS = Net profit ÷ Number of shares (annualise quarterly figures).
- P/E ratio = Market price ÷ EPS. Compare only within the same sector.
- Book value per share = (Total assets − Total liabilities) ÷ Total shares. Useful for banks and insurers (P/B ratio).
- Dividend yield = (Cash dividend per share ÷ Price) × 100. Bonus shares are not cash.
With the daily price band now at 15%, prices can swing faster than before, so never buy on one number or one tip alone.
Go deeper with my fundamental analysis of NEPSE companies, size positions with the NEPSE Risk Manager, and track holdings in GoldenEdge portfolio manager. Prefer reading first? Try my Share Bata Karodpati book summary or A Beginner’s Guide to the Stock Market summary. Not ready to pick stocks? Mutual fund SIPs are a simpler start — see the SIP Calculator Nepal.
8 Mistakes First-Time Investors Make
- Forgetting EDIS after selling. The 20% close-out fine is the most expensive beginner mistake.
- Letting Demat or MeroShare renewal lapse. Unpaid accounts were frozen from Shrawan 16 this year. Pay the Rs. 150 early.
- Name mismatch between citizenship, bank and Demat — causes rejected IPOs and failed credits.
- Skipping the NID update on an old Demat account when your DP asks for KYC.
- Not updating WACC, which can stall EDIS or calculate tax on the wrong cost.
- Using fake links. Only use meroshare.cdsc.com.np and your broker’s official TMS address. Never share OTPs, PINs or passwords.
- Trading on social-media “tips” from Telegram, TikTok or Facebook groups.
- Investing money you need soon. NEPSE can fall for months; keep an emergency fund separate.
Stuck on an error? My Mero Share problems and fixes guide covers the 15 most common ones.
Your Start-to-First-Trade Checklist
- ☐ Bank account in your exact citizenship name, with mobile banking and ConnectIPS
- ☐ National ID (NID) number in hand
- ☐ Demat opened — BOID noted
- ☐ MeroShare activated; password and PIN changed
- ☐ CRN received and bank linked in MeroShare
- ☐ First IPO applied (optional)
- ☐ TMS account opened; funds loaded via ConnectIPS
- ☐ Sell routine learned: TMS sell → WACC → EDIS the same day
- ☐ Yearly renewal reminder set before Shrawan
Frequently Asked Questions
Can I start investing in the Nepal share market completely online?
Yes. Most DPs offer online Demat opening, MeroShare details arrive by SMS or email, most banks issue CRN online, and every broker has online TMS registration. Selling is also fully online through TMS and MeroShare EDIS.
What is the minimum amount needed to start?
There is no official minimum. An IPO application for 10 units at Rs. 100 costs Rs. 1,000, plus Rs. 150 a year in account fees. In the secondary market you can buy a few shares, but flat charges make very small trades costly.
What is the difference between MeroShare and TMS?
MeroShare (by CDSC) is for IPOs, right shares, holdings, WACC and EDIS. TMS (by NEPSE, through your broker) is where you buy and sell listed shares. You need both to trade.
On which days and at what time does NEPSE trade?
Monday to Friday since 6 April 2026. Pre-open runs from 10:30 to 10:45 AM and continuous trading from 11:00 AM to 3:00 PM. After-market orders can be placed from 5 PM to 10 AM.
How much capital gains tax do I pay on shares now?
For individuals, 10% of profit if you held the shares for 365 days or less and 7.5% if held longer, effective from 17 July 2026 (Shrawan 1, 2083). It is deducted at settlement as a final tax.
Do I need a National ID to open a Demat account?
Yes. Since Shrawan 1, 2083, a National Identity Number is mandatory for new Demat accounts and is also required when updating KYC on existing accounts.
How far can a share price move in one day?
Up to 15% up or down since 20 April 2026 (previously 10%). The whole market halts for 15 minutes if the NEPSE index moves 5% within the first two hours, and closes for the day if it moves 8%.
Is intraday trading allowed in Nepal?
Not yet. SEBON published a concept paper on 24 September 2026 proposing a phased, “buy first, sell later” intraday model for selected liquid stocks and invited feedback. Until it is implemented, shares you buy must settle into your Demat before you can sell them.
When do I get money after selling shares?
NEPSE settles on T+2 (two working days after the trade). SEBON has directed brokers to pay investors within this period, provided you completed EDIS on time.
My Demat shows frozen or expired. Are my shares lost?
No. CDSC keeps your holdings and BOID. Pay the pending annual fee through eSewa, Khalti, ConnectIPS or your DP, and access is restored.
Final Word
Getting into NEPSE in 2026 is simpler than ever: a bank account, a Demat (with your NID number), MeroShare with a CRN, and a TMS login — all online. The things that trip people up are the new rules: the NID requirement, higher capital gains tax, wider 15% price swings and the EDIS step after every sale. Get those right, start with IPOs or small, well-researched positions, and give your investments time.
For daily market moves, follow my NEPSE Update page.
Disclaimer: This guide is for education only and is not financial advice. Share prices can fall as well as rise. Fees, tax rates and trading hours are as published by SEBON, NEPSE, CDSC and the Finance Act 2083 at the time of writing; confirm current rates with your broker or DP before trading.
Sources: NEPSE Monday–Friday notice; 15% price limit and circuit breakers; CGT increase effective Shrawan 1; NID mandatory for Demat; CDSC suspension of unpaid accounts; After-Market Orders on TMS; SEBON broker directives; SEBON intraday concept paper; SEBON commission rates; Close-out penalties FY 2025/26.