What Is a DEMAT Account, and How Do You Open One in Nepal?
Before you can buy a single share in Nepal, you need a DEMAT account. If you're new to the market, the mix of DEMAT, BOID, Meroshare and TMS can be confusing. This guide untangles them.
What a DEMAT account actually is
DEMAT is short for dematerialised. A DEMAT account holds your shares electronically instead of as paper certificates. It's maintained by CDSC (CDS and Clearing Ltd.) through a DP (Depository Participant) — usually a broker or a bank. Think of it as a bank account, but for shares rather than cash.
Every DEMAT account has a unique 16-digit BOID (Beneficial Owner Identification number), which in Nepal starts with 130. Your BOID is how the system — and IPO result checkers — identify your holdings.
DEMAT vs Meroshare vs TMS — how they fit together
- DEMAT account (CDSC): where your shares are stored.
- Meroshare: the online portal to view your holdings and to apply for IPOs/right shares (ASBA). It sits on top of your DEMAT.
- TMS (Trade Management System): your broker's platform to buy and sell shares in the secondary market. You get TMS access when you open a trading account with a broker.
Simple mental model: DEMAT = storage, Meroshare = apply & view, TMS = trade.
How to open a DEMAT account
- Choose a DP — a stock broker or a commercial bank that offers DEMAT services.
- Fill in the DEMAT account opening form (online or in person).
- Submit the usual documents: a copy of your citizenship, passport-size photos, and your bank account details.
- Pay the account-opening/annual fee.
- Once approved, you receive your BOID and can request a Meroshare login from the same DP.
If you also want to trade in the secondary market, open a trading account with a broker and link it — that's what gives you TMS access.
Typical charges
- Account opening — a one-time fee.
- Annual maintenance — a small yearly charge to keep the DEMAT active.
- Meroshare renewal — a small annual fee for the online portal.
Exact amounts vary by DP, so check with your broker/bank. They're modest relative to typical investment sizes.
Keeping your account safe
- Never share your Meroshare password or transaction PIN.
- You can legally hold only one BOID — one DEMAT account per person.
- Keep your BOID handy (you'll need it every IPO season to check results).
A DEMAT account is the foundation of everything else in the Nepali share market — it stores your shares and gives you a BOID. Add Meroshare to apply for IPOs and a broker/TMS to trade, and you're fully set up.
Already have your BOID? Check any IPO result instantly on the NepseIQ IPO checker.
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