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Depository Participant (DP)
Depository is a place where financial securities are held in dematerialized form. It is responsible for maintenance of ownership records and facilitation of trading in dematerialized securities. A Depository Participant (DP) is an intermediary between the investor and the depository. Depository participants are mainly banks and brokers.What is Demat Account and Dematerialization
Demat is account is a account which is just like a bank account. But here insist of money, Securities and shares are stored. It holds the shares being bought and the share those were dematerialized, converted from physical. You can create your demat account from any Merchant Bank including Capital, Stock Broker and with some banks.Dematerialization is the process of converting the physical certificate of share into an electronic form. Thus it will make easy to maintain, access from anywhere and possible of fast share transfer(sale and buy). For Dematerialization you need to fill in a Demat Request Form (DRF), which is available with the DP and submit along with physical certificates. A separate DRF must be filled for every ISIN.
How to open Demat account in Nepal
If you are interested in opening a Demat account you need to select any of the DPs those are licensed by Central Securities Depository from Securities Board of Nepal (SEBON). Most of the banks provide the facilities to create a demat account partnering with some DPs in the Nepal. You need to associate one of your bank account with the demat account. So for easy you can apply for demat account through the bank you have account with. Most of the banks which provides this service are free of cost. They may also ask you for some registration charge and some annual charges.After about a week your account is created and you will get a BOID. BOID is Beneficial Owner Identification Number or Demat Account Number which is of 16 digits consisting of 08 digits DP ID and 08 digits Client ID.
Under the Centralized Applications Supported by Blocked Amount (C-ASBA) system, investors should first get C-ASBA Registration Number (CRN). So once your account is opened and you have BOID number you need to apply for CRN Number filling up the C-ASBA Registration Form. You will get your CRN number with in a week. CRN number is provided after verification of your demat account and your bank details.
Apply for Mero Share Account
Now Our Demat account is created, but yet there is no way to access through the internet. We need to apply for Mero Share to get Username and password to login to your Demat account. Mero share takes Rs. 50 as registration fee and You need to pay it annually. Once your Demat account is created and you get your CRN number you can process to apply. So Again go to the bank or the DP where you had created your account and ask the form for mero share. You need to make the deposit of 50 Rupees. You need to fill your bank account no. Your CRN number and your email address in the form. You will get mail form Mero share with in some days. Now you are good to go.
How to Apply For IPO Online in Nepal
Initial public offering (IPO) or stock market launch is the very first sale of stock issued by a company to the public. Prior to an IPO the company is considered private. The primary objective of an IPO is usually to raise capital for a business. You need to have Demat account to Apply for IPO and be a share holder of that Business. First you need to login to the online portal of your Demat account(Mero Share). There you can find all the opened IPO. Select the IPO, fill your required share amount make the payment. It would take some months for processed. Your share could be approved or rejected.How to Close Demat Account in Nepal
Demat account cost maintenance and annual fees. If you no longer use the demat account you can close the Demat account. To close the Demat account you need to fill the form to close the demat account. If you have balance with in your demat account you should mention where the balance to be transferred. You need to provide your DP Client ID and your details for the verifications. The Demat account closing form should be available in the DP or the bank you had created your Demat account. I had tried this process. You can contact your bank for more information.Best Bank to Open Demat Account in Nepal
As Demat account is just like a bank account which saves Securities in-place of money, you can select any banks you like. The bank could could be your best based on your requirements. There are a lot of banks which are registered as a licensed Depository Participants. So you can select ant that is best for you. Here are the List of banks those are licensed by Central Securities Depository from Securities Board of Nepal (SEBON):-- Agricultural Development Bank Limited
- Bank of Kathmandu Limited
- Century Commercial Bank Limited
- Citizens Bank International Limited
- Everest Bank Limited
- Janata Bank Nepal Limited
- Kailash Bikash Bank Limited
- Kumari Bank Limited
- Machhapuchchhre Bank Limited
- Mahalaxmi Bikas Bank Limited
- Nabil Investment Banking Limited
- Nepal Bangladesh Bank Limited
- Nepal Bank Limited
- Nepal Credit & Commerce Bank Limited
- Nepal SBI Bank Limited
- NIC Asia Bank Limited
- Prabhu Bank Limited
- Prime Commercial Bank Limited
- Sanima Bank Limited
Conclusion
Here we talk about How to create a demat account in Nepal. How to get started with online system and How to get started with Demat account. We also mention how to fill your first IPO. Hope you could learn some this for this article. We would love to hear from you what could be improved and what should be.<<<Previous
9 Comments
>Open Bank Account>Open DMAT Account>After getting DMAT Account number apply for CRN number>Apply for Mero Share Account> And Finally start applying for IPO Online
ReplyDeleteAm I getting this alright?
Yes. Absolutely. For entering into secondary market you need additional account; trading account created in association with one of broker company out of 58 at present days.
DeleteHow to transfer money to DEMAT account?
ReplyDeleteYou can't directly transfer money to Demat Account but in the trading account from which you can do transaction to buy or sell the shares. Trading Account is made linked with one of broker company.
DeleteHow can I get the dmat account number after filling the online form up from at home ?
ReplyDeleteProbably you have to visit Bank once. If not you would be notify in your registered email or phone number.
DeleteI want open Demait account
ReplyDeleteGo to the Bank and asked for the Demat account form to open the Demat account. Before filling up make sure that the Bank provide services of Demat account. Bank have separate section to handle Demat account. and are named as Capital with name of Bank.
DeleteNice blog thanks for postiing
ReplyDelete