Steps to Open DEMAT Account and Mero Share to Apply for Shares
Unless you are living under a rock, you have no clue about what hype the share market has created around the people of Nepal. Even though there was a good amount of people involved in the share market, the hype or trend all began when the lockdown started. The stocks of many companies fell, and the news about this circled in online media like a wildfire, which then caught the attention of a lot of people. The new generation of people involved in this market then began studying the share market and got enlightened about the IPO market also known as the primary market.
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What is IPO?
IPO can basically be understood as Initial Public Offering which means a private company selling their stocks to the public. It is the company’s ownership transition of private ownership shares to public ownership. The IPO process is also referred to as “going public.”
What do you need to apply for IPO?
However, before applying for the ownership of the IPO, you need to open a DEMAT account.
What is a DEMAT account?
A DEMAT account is used to apply, store and sell the company shares that you own in a dematerialized form. This simply means that the physical share that we used previously will now be converted and be stored in a digital form. This service has made it easier and convenient for quicker transactions and ownership transfer.
Cost for DEMAT account?
Some changes need to be paid while opening a DEMAT account. It costs a total of Rs 150 which includes Rs 50 for account opening and Rs 100 for annual account maintenance.
How to open a DEMAT account?
To Open a DEMAT account there are a few steps that needs to be followed, they are:
- To open a DEMAT account, you will need a bank account.
- Then you need to fill up the DEMAT form for which you will need your personal details, Nepali Citizenship photocopy, and a passport size photograph.
- Submit your form and it will usually take a few days to set it up.
- You will then receive a 16-digit DEMAT account number and a cheque book, through which you can sell your shares.
- The shares held or purchased are deposited in this account, just like money is deposited in a bank account.
Some companies have provided the service of online DEMAT whereas some haven’t.
What After DEMAT Account?
After opening your DEMAT account, you need to log in to your Mero Share.
What is Mero Share?
Mero Share is an online portal of Central Depository System and Clearing Ltd, which provides the details of share transactions with the linked DEMAT account.
How to Open Mero Share Account?
To open Mero Share you will need to go through the following steps:
- Go to the bank where you have created your DEMAT account.
- Apply a form for the CRN number which stands for C-ASBA Registration Number.
- Usually, you receive your CRN number the next day.
- Then you go to the Mero Share web portal of CDSC, and fill-up the form with your email ID, phone number alone with DPID, and Client ID.
- After this, you set up a password and PIN which will be necessary to login into your account.
Cost for Mero Share account?
You will need to pay Nrs.50 per year to renew your Mero Share account.
How to apply for Share using Mero Share?
Applying for a share is easy to work once you have your DEMAT and Mero Share account in your hand. We have listed the steps required to apply for an IPO share:
- Go to the Mero Share web portal
- Log in with your username and password.
- Go to My ASBA.
- Click on Apply for Issue.
- Then you will be shown a list of companies that have opened IPO.
- Click on the company of which you want to apply for an IPO.
- Fill up the form shown on the webpage.
- Enter the 4 digit pin you have set before.
See more: A Beginner’s Guide To Investing in NEPSE Share Market
How to buy/sell shares online?
Things to Know Before Investing in Money.