How To Open Demat Account In Nepal

Do you want to open a Demat account in Nepal? If and don’t know how to do that, here is a comprehensive guide. This blog post will discuss creating a Demat account in Nepal and the eligibility requirements.

Stock markets are an integral part of any economy. It helps keep the stock market efficient by providing a medium for companies to raise capital and individuals to invest in those companies. And as such, investors need appropriate avenues to invest their money.

For many of us who have a bank account, a Demat account is a must to invest in the share market. This article will show you how to open a Demat account and what it includes.

You can invest in mutual funds, stocks, or other securities in a DEMAT account. In addition, the Demat account has made investing easy and accessible. You can buy shares in the dematerialized form, meaning there is no need to worry about the physical security of your investment. We provide you with great service at a great price.

In the age of digital assets, for-profit and nonprofit organizations are often burdened by physical certificates that expire, get lost or damaged, or must be stored in a safe. Our solution, a Demat account, allows you to trade securities electronically without needing physical certificates. This saves time and money and is much more environmentally friendly.

What is Demat?

A Demat account (short for a Dematerialized account) is a financial security (equity or debt), keeping the account in electronic form. Investors can keep their shares in an electronic format using a Demat account. It’s a better alternative than holding and trading physical share certificates, which require a lot of paperwork. Now that most transactions are online, trading in the Demat form is more convenient.

The main benefit of having a Demat account is that it reduces paperwork and makes it easier to buy and sell shares. It is also more secure than holding physical shares, as there is no risk of them being lost or stolen.

Another advantage of Demat accounts is that they allow investors to hold many shares in a single account. This is convenient for investors who want to diversify their portfolios or trade in multiple companies.

How to Open a Demat Account In Nepal

Opening a Demat account in Nepal is a fairly simple process. You only need to provide the necessary documents, and the bank will open one for you. You need to provide any personal information, such as your address, phone number, email, etc. The process may differ from bank to bank, but it’s usually straightforward.

This section is about opening a dematerialized account in Nepal and what documentation (documents) must be provided to open an account.

You should consider many important things before opening a Demat account. However, here are the requirements for creating a Demat account in Nepal. First, you should have a bank account. For instance, savings accounts, nominal accounts, fixed accounts, etc.

You must have the following documents to create a Demat account if you have a bank account.

Original and photocopy of the citizenship certificate
Passport-sized photograph
A photo and a Citizenship certificate in case of adding a successor

Important: If a participant is below 18, the guardian can operate the account until the individual becomes an adult. In this scenario, the photograph and birth certificate of the minor, along with the photocopy of the guardian’s citizenship certificate, are needed.

1. Choose a Depository Participant

First, you need to choose a Depository Participant(DP) with which you want to create a Demat account. Various financial institutions, stockbrokers, and commercial and development banks in Nepal offer DP services. It is best to create a DEMAT account with a bank account.

2. Submit KYC form

Once you have chosen DP, the next step is to submit the KYC form. The form consists of an account opening form, personal KYC, and the Mero share form. These forms you need to fill out and submit. To submit the KYC form, visit the DP office you have chosen. For instance, we have selected the bank. We will fill out and submit the form to the Bank.

3. Get your BOID Number and MeroShare Details

Once you have submitted all required documents and application forms, you’ll receive a 16-digit unique BOID from your DP (Bank). Your Demat account has been created successfully. However, creating a DEMAT a/c may take a few days to a week.

Install the Mero share app on your smartphone and then check your mail. There will be Mero share app credentials. Use those credentials to log in to the Mero share app.

On the app, you must change your password and set a 4-digit transaction pin. Once you have set up the Mero share preferences, go to My ASBA, then in the application for issue section, you will see a list of IPOs. Choose any firm’s IPO and apply for it. When applying for the share, you have to enter the amount, then the CRN number. Once done, check the terms and conditions box and enter the transaction pin to apply for a share.

How To Open a Demat Account Online In Nepal

You can create your Demat account online. Here is the guide on opening a Demat account online in Nepal.

You can open a Demat account online from your bank if your bank provides an online Demat creation service.

I am using NIC Asia Bank, which offers various online services, including requests for a Demat account.

You have to follow the simple steps to open a Demat account online. In my case, I am using NIC Asia to create an online Demat account.

Open Demat Account Online nic asia — NIC Asia Online Demat Account Open

If you are a Nic Asia customer, this guide can help you. But for different banks, you have to check yourself whether they offer an online Demat request service.

Step-by-step to open a Demat account online in Nepal:

Open this link (NIC Asia online Demat request web page).
Click on the Signup button.
Enter your valid email account.
Check your email for the OTP verification code.
Type your OTO code and enter submit.
Now, enter your Full name – including your last name.
Enter your valid mobile number.
Choose your username
Set and confirm your password

You are signing up for an online Demat account process on NIC Asia.

You must now fill out an online Demat request form.

Here are the steps you have to follow to create a Demat account online:

Provide details such as name, email, dob, and citizenship number.
Provide your current and permanent address.
Provide family details.
Enter your account details.
Provide your occupation details.
Upload valid, clear documents.
Read the terms & conditions and submit.

Congratulations! Your Demat account has been requested successfully. You must now visit your nearest NIC Asia branch with the valid documents uploaded during account creation within 15 days.

What Is The Cost For Opening a DEMAT A/C

Their charge for opening a Demat A/c is around RS 150. In addition, the account opening charge is 50, whereas the Annual Account Maintenance Charge is Rs. 100.

Conclusion

I hope this article helps you answer your query about how to open a Demat account in Nepal. You can open a Demat account at the bank where you have a bank account. You can easily request a Demat account online. I highly recommend that you visit your nearest bank where you have your account and open a Demat account there. In this process, you’ll get a quick response from the bank and fill up the form without mistakes.