How to Start Investing in the Nepal Share Market
If you've never bought a share before, the Nepali market can feel intimidating. It doesn't need to be. Here's a clear, step-by-step roadmap from zero to your first investment.
Step 1 — Set up your accounts
You need three things (covered in detail in our DEMAT account guide):
- A DEMAT account (to hold shares) and your BOID.
- A Meroshare login (to apply for IPOs and view holdings).
- A bank account with C-ASBA and your CRN.
To trade in the secondary market, also open a trading account with a broker, which gives you TMS access.
Step 2 — Understand the two markets
- Primary market (IPOs): you apply for new shares at face value (usually Rs. 100) through Meroshare. Allotment is by lottery. Low entry cost, but you might not get allotted. See our IPO application guide.
- Secondary market (NEPSE): you buy and sell already-listed shares from other investors, at market price, through your broker's TMS during trading hours.
Many beginners start with IPOs (low cost, low risk) and move into the secondary market as they learn.
Step 3 — Learn to research before you buy
Don't buy on tips alone. Build a habit of checking a few things for any stock:
- The sector — is it a steady commercial bank or a volatile microfinance/hydro? (See NEPSE sectors explained.)
- The trend and levels — where is the price relative to its moving averages, support and resistance?
- Momentum — indicators like RSI tell you if a move is stretched.
- Volume — is there real interest, or is it thinly traded?
NepseIQ's free analysis tool puts all of this on one page for any NEPSE stock.
Step 4 — Place your first order
- Log in to your broker's TMS and make sure your trading account is funded.
- Search the stock, enter the quantity and your bid price, and place a buy order during market hours (Monday–Friday, 11 AM–3 PM NPT).
- When a matching seller is found, your order executes.
- Shares settle into your DEMAT on a T+2 basis (two trading days later) — you generally can't sell before they settle.
Step 5 — Manage risk like an adult
- Only invest money you can afford to leave invested — never borrowed money you need soon.
- Diversify — don't put everything into one stock or one sector.
- Have a plan — know roughly when you'd take profit or cut a loss before you buy.
- Ignore the hype — Facebook/YouTube "sure-shot" tips are how beginners lose money.
- Do your own research (DYOR) — tools and signals are inputs, not commands.
A realistic first-year mindset
Your first year is for learning, not for getting rich. Start small, apply for a few IPOs, buy one or two stocks you actually understand, and pay attention to how they behave through dividends, book closures and market swings. Experience compounds faster than money at this stage.
The path is simple: open your accounts, learn the difference between IPOs and the secondary market, research before you buy, place a sensible first order, and manage risk. Do that consistently and the rest follows.
Start by exploring any stock free on the NepseIQ analysis tool or scanning the market with the screener.
Open the analysis tool →