The share market has been a fortune for a lot and misfortune for some too. It has gained a lot of popularity with time, with many people looking forward to investing. But I understand it can be a hassle getting to share market with all the process and the where to invest. Don’t worry, this article will help you know about the basic requirements.
1. Bank Account
Opening a bank account is an obvious process for getting into the share market. You could open a bank account in any bank and get the job done. You will require a photo and copy of citizenship/passport & you need to show the original citizenship/passport for verification.
2. DEMAT Account
After you have a bank account, you must now open a DEMAT Account from the bank itself. DEMAT Acc is mandatory for anyone looking to invest in the share market whether it be a primary or secondary market. For a DEMAT account, you need to go to the bank and fill up a form and pay a fee of Rs.150 per year. The shares you receive will get credited to your DEMAT account.
3. C-ASBA Number
Centralized Application Supported by Blocked Amount (C-ASBA) has just started in Nepal, which is much more organized and efficient than ASBA. It will enable the amount to get blocked at Bank’s end also while verifying the DEMAT and Bank acc after you apply for a share at the primary market. You can apply for a C-ASBA number at the bank after you get your DEMAT Account.
C-ASBA is essential for shares in the primary market, but you do not need it for trading shares at the secondary market.
4. Mero Share Account
With the world and almost every sector getting digitized, the share market has also got digitized with MeroShare. With the MeroShare account, you can apply for shares online without having to visit the bank. This is for applying for shares and the right offerings at the primary market. With the EDIS facility, you can also send shares to the broker. You can apply for the MeroShare account at the bank for which you have to pay Rs. 50 per year.
5. Broker Account
For the Primary market, with the above requirements, you can start investing in the share market. But to sell or buy shares from the secondary market, you will need a broker account which you can make through any brokerage firm. I suggest you apply to the brokerage firm near you.
I hope I have covered all your questions with this article. These are the basic requirements for start applying for a share at the Primary market. If you want to know about the Primary and Secondary market, you can click here.