The trend of filling IPOs has always been in the Nepalese stock market. It kinda skyrocketed in the Covid lockdown days, as everyone recalls. To fill up for an IP, you need a DEMAT account and most of you might have already got one. But, this article is for those who are looking to open one. So, without further ado, let's learn about how to open a demat account in Nepal and how to apply IPO in Nepal in this article.

How to open a Demat account in Nepal

What is a DEMAT Account?

A Demat account's abbreviation stands for Dematerialized account which consists of your securities such as shares, bonds, and debenture in a digital form. It cuts off the need to be physically present to get physical certificates and facilitates easy and safer investment management. In Nepal, you can open a Demat account through any Depositary Participant. Which is a financial institution that acts as an intermediary between the investor and the central depository. It can be a commercial bank or any other such licensed institution.

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Documents required for Demat Account

• Nepali Citizenship/Passport/Driving License/Govt-issued ID
• Recent Passport Sized Photographs
• Birth Certificate and Guardian's CItizenship for Minors
• Permanent Account Number (PAN) card

Steps to open a Demat account in Nepal

• If you already have a bank account or multiple bank accounts, you can fill up the form for a Demat Account from your desired bank.
• Many commercial banks provide online Demat application forms while some financial institutions require you to fill up old-school paper forms.
• Then, submit the form and it will take 1/2 business days to verify your application.
• After verifying, you'll get your DEMAT account details with the Beneficiary Owner Identification (BOID) number.
• After that, you'll also need to take the CRN number (C-ASBA Registration Number) as well by filling up a separate paper form or online form. It might take a few days as well.

How to apply for an IPO in Nepal?

If you have gotten your CRN number, here are the steps to apply for IPO in Nepal:

• Firstly, open up an account on "Mero Share", which is an online portal of CDSC (Central Depository System and Clearing Ltd). It can be done through the web portal or the mobile app of Mero Share.
• Then, head over to the My ASBA tab and click the Current Issue.
• After that, you can select the desired IPO and also put the number of shares as per the limit.
• Then, select the bank account and CRN number.
• Enter your 4-digit transaction PIN and proceed.
• Or else, you can also apply IPO through your mobile banking apps.
• Each bank has a different sort of options and you can choose accordingly.

Frequently Asked Questions (FAQs)

• What is the charge for opening a Demat Account?

Charges might range from NPR 50 to NPR 150 for opening a Demat account in Nepal.

• What is the charge for applying for an IPO?

Appling IPO is free without any chargers but a certain amount of your account balance will be kept on hold until the result notice.