Tuesday, 7 July 2020

How To Renew Demat And Mero Share Account From Home Online

Deepak Lamichhane July 07, 2020 0

We can easily renew both Demat and Mero Share accounts from home online. We can do this from two applications from our smartphones. So mainly we should have an account on any one of those to do the renewation. But first, to renew your Demat and Mero Share account you should know the expiry date of respective accounts. To know the expiry date just goto the 'My Details' section and look for 'Account Open date'.So every year before that day you should renew your accounts.

So here before 24 December, I have to renew my Demat and Mero Share account to continue my transaction every year.

(1)From E-Sewa

From our e-sewa account, we can easily renew our Demat and mero share account. So for this, we first set up e-sewa application from the play store and then put the balance on your e-sewa account. After this open up your e-sewa account and click on the 'Finance and EMI' option.

After clicking on that click the 'Finance' option and search the banks or brokers from where you open your Demat account and after that screen will look like this:

Then fill all the details asked as per your details on the Mero Share account. Put your full name on 'Demat Account Holder's Full Name' and contact details on the 'Contact Number' option. In the 'Service' option select the account you have to renew as only Demat or only Mero Share or both as per the expiry date of your accounts. For Demat account Rs.105 and for Mero Share account Rs.55 will be deducted from your E-sewa account Rs.5 more on each account renewal than when we do from the bank directly.

(2)From Khalti

We can also renew our accounts from Khalti also. First, we have to set up our Khalti account and put the balance on our Khalti wallet. After this open up Khalti and click on the 'Share' option.

After that select, the company from where you open your Demat and Mero Share account and fill all the links as per your detains on Mero Share profile.

Select the account you want to renew at the top of your screen and fill up all the information as asked there. Rs.100 will be deducted for Demat account renewal and Rs.50 will be deducted for Mero Share account renewal from your Khalti wallet.

Monday, 6 July 2020

How To Apply For IPOs Online Using Mero Share Account From Home In Nepal

Deepak Lamichhane July 06, 2020 0

About Mero Share Account:

Mero Share is an account that provides that comforts and saves our time to apply for new stocks from our own home online instead of going to the broker. After the registration of Mero Share account from any merchant brokers, we are able to login in Mero Share account. We have to renew our Mero Share account once in a year with paying Rs.50. Doing the transaction of shares online automatically saves our time and will be more secured and safe obviously. Mero Share account allows you to apply for fresh shares at paid-up ie; for IPO value(mostly Rs.100 per share) before it goes in the secondary market. This account is completely only for the primary market and buying and selling of shares can not be done from the Mero Share account. Also, you can apply for the right shares of your stocks by using this account. Within several days of filling the voucher of the Mero Share account, you will get the email notifications of username and password to login to the account. You can also change the password of your account once after login into account by yourself.

How To Apply For IPOs Using Mero Share Account:

(1)Visit Mero Share official site

First, you have to go to the official website of the Mero Share account. You can directly go from the below link.

Visit link directly click here: Mero Share Account

Once you click the above link you will be at the official website of Mero Share account and your screen should look like this.

(2)Enter the username and password sent from Mero Share to your email account

So you have to put the information as asked on the screen. Select your DP means to choose your merchant broker from where you open your Demat account and enter the username and password sent from Mero Share to your email at first. After Entering this all you will have a screen like this.

(3)Goto The 'My ASBA' Section

Now just click on the 'My ASBA' section.

After clicking on the 'My ASBA' section you will have a screen like this.

Now there appear the different sub-sections like a 'Current issue', 'Apply for Issue', 'Application report', and 'Old Application Report' as shown in the above picture. The current issue signifies the issues that are opened. To apply for shares you have to go to the 'Apply for Issue' sub-section and fill all the information asked there. Now after entering all the information that asked and select apply. You have to verify the CRN number and last you have to write the numbers that appear on the screen for final verification. So to find whether your applied quantity of shares is allotted or not, just go to the 'Application Report' section and find there. If you are allotted screen will be like this:

If you are applying for 50 shares and you are allotted only 10 kittas, then your other amount of 40 kittas ie; Rs.4000 Wii be released to your bank account automatically within a couple of days. So in this way, we can easily apply for shares from our own home via Mero Share account.

How To Change The Password of Mero Share Account?

If you want to change the password of Mero Share account, just goto the 'Mero_Share_Profile' section and just single click on that. After clicking there appears a screen where your profile shows along with 'Change Password' and 'Activity Log' as sub-sections. So after clicking on 'Change Password' section you can easily change your password as per your desires.

Sunday, 5 July 2020

How To Do Dividend and Bonus Shares Calculation In Stock Market?

Deepak Lamichhane July 05, 2020 0

We purchase the shares from the primary and secondary markets at different prices as per the market price of that particular stocks. These companies give us dividends and bonus shares annually from their profits and earnings. We easily get the dividend and bonus shares directly to our account but being an investor we should also know how dividend and bonus share works by ourselves. So here we are going to discuss briefly dividend and bonus shares and we will learn how they are given to us:

What is a Dividend?

The dividend is simply a cash amount(can also be issued in share forms) that is distributed from a company to its shareholders from their earnings. Most of the companies distributed dividends annually on their AGM day in Nepal. And company distributes dividends in percentile form to their shareholders like 20%, 40%, 50%, etc. The board of directors of that company decides the percentage dividend distribution to its shareholders. Dividend distribution of any company directly related to the increase or decrease of the market price in average from the previous year and profit and loss of the company. So we can say that dividend distribution capacity is directly proportional to the profit of that company in an entire year.

How To Calculate Dividend?

For eg; any company named ABC announces a cash dividend of 20% to its shareholders and you have 100 kittas shares of that ABC company. Now from this, you can easily calculate how much cash amount you are going to receive after payment is done. The dividend announcement 20% is you are going to get Rs.20 per share that you invested in that company. So per share, you will get Rs.20 but you have stock of 100 shares to that company, so, you will get Rs.20*100=Rs.2000 as a cash dividend directly to your account. (Paid-up value of most of the stocks per share in Nepal is Rs.100.So dividend is also calculated assuming this. If the paid value is Rs.200 per share then Rs.20*200=Rs.4000 will be total dividend amount.)

Dividend announces from company=20%

Paid-up value of company per share=Rs.100

Number of shares you have of that company=100

The total dividend you will get=Rs.20%*100*100

=Rs.2000

What are Bonus Shares?

Bonus shares are like normal shares distributed to shareholders of a company from the profit and earnings to increase the capital as the main purpose. Bonus shares are distributed free cost of charge unlikely to the right shares. Like dividends, bonus shares are also distributed annually in AGM day. Board of directors announces a certain percentage of bonus shares but for the final issues of it, approval should be come from SEBON.SEBON will decide whether the company is capable of issuing the bonus shares or not ie; capable of increment on capital or not. Most of the companies in Nepal distribute bonus shares in share form unlikely to some of the companies who distribute in cash form also. After getting the bonus shares, these bonus shares will also be listed to your Demat account summing on your previous shares.

How To Calculate Bonus Shares:

For eg; a company named XYZ announces 20% bonus shares to its shareholders and you have 100 kittas shares of that company. From this data, you can easily calculate how many shares are going to be added to your previous shares in your Demat account. Bonus shares of 20% indicate that you will get 0.2 kitta per share. But you have 100 kittas shares. So for your 100 kittas shares, you are going to ger 0.2*100=20 kittas shares making up a total of 120 kittas shares after it gets listed. Only after the listing of Bonus shares to NEPSE, you can do the transaction of bonus shares. Same goes with the bonus amount also.20% bonus share means Rs.20 per kitta of your share. So you will get Rs.20*100=Rs.2000 as a bonus amount.

Bonus share announcement=20%

Number of shares you have of that company=100 kittas

Total bonus shares you will get=100*20%

=20 kittas

The total amount of bonus amount=Rs.100*20%*100

=Rs.2000

Saturday, 4 July 2020

Different Accounts That Are Needed For The Trading Of Stocks In Nepal

Deepak Lamichhane July 04, 2020 1

Accounts That Are Needed For The Trading Of Stocks In Nepal:

(1)Bank Account

First you need a bank account to process for further accounts which will be needed to bid on stocks. It is not that compulsory you must open your account from this bank or from that bank. You can choose any bank in which you can feel secured and easy. Certain documents are needed for you to open up a bank account like citizenship, some passport size photos, etc. After opening a bank account, the bank will give you your account number through which you can do the transaction of any kind.The Bank account is basic and compulsory to start the trading.

(2)Demat Account

This is an account where records of shares and stocks that any investor has located in a digital form. Time isn't like earlier days when investors get the certificates from the company after investing on them. So to remove this old fashion of keeping records of shares in physical form, this new electronic platform has been introduced in the name of Demat account. This is a compulsory account whether you are applying on the primary or secondary markets. This account is mandatory for any investors who want to invest in the stock market in anyways like through primary only or secondary market only or mutual fund only or combined. You can open up a Demat account from banks, or brokers.

(3)C-ASBA/ASBA Account

Centralized applications supported by block amount is the advanced form of ASBA which actually provides investors to apply for IPOs, right shares by blocking their money while getting that service. For eg; a new company named ABC open IPOs and you want to apply for it. So you apply for 100 kittas shares as Rs.100 per share making up the total money as Rs.10000.So once you apply this share until the allotment result comes up, you can't do anything with that money. This money will be blocked and after allotment only, the money will be automatically transferred to your account if you are not fully allotted like if you get 60 kittas only Rs.4000 will be directly transferred to your bank account. After opening the Demat account, you will be provided CRN number which will be required while you apply for shares through the MERO SHARE account.

(4)MERO SHARE Account

This account allows you to apply shares directly from home through online. To get this service you have to open MERO SHARE account from the same bank from where you open Demat and C-ASBA account. You have to pay Rs.50 for this service yearwise and you have to renew it every year. After receiving the username and password from the MERO SHARE you can easily place a bid on IPOs and right shares from home.

(5)Broker Account

The broker account is completely for the secondary market. Means when you want to buy the shares from the secondary market or you want to sell your shares to market then broker account will lead you to broker houses from where you can play with the secondary market. The broker will take a certain percentage of the amount of transactions you go with the secondary market. You can open your broker account from any broker houses.

Friday, 3 July 2020

24 Stock Terms That You Should Know Before Entering Stock Market in Nepal

Deepak Lamichhane July 03, 2020 0

Basic Terms You Should Know Before Entering Stock Market in Nepal:

It is the portion or parts of the company's capital.Larger the shares you have means you have a access larger portion of right to company's capital and profit.

Stocks:

It is the collective form of shares.Shares of any organization in larger numbers refers stocks of that organization.It refers the ownership of individual over that company.

IPO:

Full form of IPO is Initial Public Offerings.When company is newly established or old company wants to expand its capital,they release shares to public which are known as IPOs.

FPO:

FPO means Follow On Public Offerings and it is completly different from secondary market.A company generally issues FPO after releasing IPOs to increase the equity of company.

Broker:

Broker is the organization which is responsible for the trading and transaction of shares.In Nepal there are 50 broker houses.They can buy shares for you and sell your shares to others by taking certain amount of commission.

NEPSE:

Nepal Stock Exchange Board(NEPSE) is the board which regulates the transaction of shares and provides the market fludity on stocks.

SEBON:

Security Exchange Board of Nepal(SEBON) is the organization which was formed directly under the government which makes the new laws,decide the rating of companies,allow or disallow the issuance of IPO's,verify the right shares,bonus shares etc.

NEPSE INDEX:

It is the point published by NEPSE at the end of day after completing the transaction.For eg;if NEPSE index is 1220 of any day means at the end of transaction at that day,market closes at this point.

Sector:

It is simply the area of total market.For eg;banking,hydropower,life insurance and non-life insurance are the main sectors to invest in Stock market in Nepal.

Stock Symbol:

It is the symbol by which transaction of that stock happens in market.For eg; whole Global IME bank limited is difficult to put to do transaction.So its short form as GBIME is used as its stock symbol for trading in market.

Market Sub Indices:

It is simply the NEPSE index of different sectors.Every sectors will not be traded at the same NEPSE index where market goes.So every sectors carry their own index high or low as that of market NEPSE index.For eg;if market closes at 1220 points then banking sector can close at 1000 points,hydropower sector can close at 800,insurance sector can close at 3000 points,non-life insurance sector can close at 2500 points.

Market Capital:

It is the total capital of any company at that time of market.For eg;if any company has 3000000 amount of shares and its single share is traded at Rs.300 then the market capitalization of that company is the product of total amount of shares and its market price per share.

Dividend:

The amount given to company's shareholders from its profits is called dividend.Most of the company gives dividend annually certain percentages as per their shares to its shareholders.

Bonus Shares:

Bonus shares are the shares distributed by a company to its shareholders from their profit to increase the capital of company.Most of the companies give certain percent bonus shares to its shareholders annually in Nepal.

Right Shares:

Right shares are like bonus shares.Both shares are issued for the purpose to increase the capital of company.Main difference between them is bonus shares are free of any charge while right shares have to purchase.Right shares are mostly issued in percentage forms like 60%,120% etc.

Bull Market:

In simple words,bull market is that condition of market in which price of most of the companies are increasing and NEPSE index reaches its peak value.

Bear Market:

It is exactly the opposite of Bull market i.e;most of the companies go down and NEPSE index reaches its lowest points.

Open:

It represents the opening price of that stock at that particular day.

Close:

It represents the closing price of any stock at that day.

Low:

It represents the lowest price of that stock at any day.

High:

It represents the highest price of any particular stock at that day.

Price History:

It simply is the history of market prices of any company over a certain time.

Auction Shares:

When a company auction its unbuying IPOs,FPOs,right shares to public then they are called as auction shares.In auction shares you have to bid the price and the highest bidder will take that shares.Minimun quantity to apply for auction shares in Nepal is 100 kitta.

Candle Stick Chart:

It is a chart showing the different informations of stock in a candle stick forms.

Thursday, 2 July 2020

Basics Guides for Absolute Beginners To Enter Stock Market in Nepal

Deepak Lamichhane July 02, 2020 0

Stock and Stock Market Introduction:

Stock is simply the ownership of any company.You are investing on stocks of any company means you have certain fractional rights to company's profits and assets.Stock of any company means the shares of that company.Stock is the collective form of shares.

Similarly Stock market refers the market where trading and issuance of new shares happen.Trading of shares include both selling and buying.Buying the shares or stocks of any company means you are now a fractional part of the company and selling stocks means you are no longer part of that organization.

Types of Stock Market:

Depending on shares,there are basically two types of market exist in stock market:

(1)Primary Market

It is one part of stock market from where investors can buy the shares directly from company issuing the shares.Company generally issues shares either it is formed as new company or when it wants to expand its capital to larger extent.For eg;new company named XYZ is established as a new company and it wants public to invest in it.Then it issues shares in name of IPO(Initial Public Offerings) to public or when a existing company named ABC wants to expand its capital larrger then it also issues shares in numbers to public as IPO.Most of the companies issue IPO as Rs.100 per share in Nepal.

(2)Secondary Market

It is another part of the company where investors buy and sell shares amongst each others.Company directly doesn't take part on trading of shares in secondary stock market.Transaction of shares in secondary market usually takes place through broker.For eg;if you have 100 shares of any company having Rs.500 per share in market at that time when you want to sell it.Then you have to place a bid, in how much per share you want to sell your share like Rs.502,Rs.503,Rs.499 etc as per you want.On the other hand Buyers wants to buy that shares as low as possible and you as a seller,you want to sell your shares as high as possible.And when your selling price and buyers buying price match,then you sell those shares and you no longer part of that company.Both sellers and buyers have to give small amount of commission to broker as broker plays a mediator roles for both.

Who controls the exchange of stocks in Nepal:

NEPSE (The Nepal Stock Exchange Limited) controls all the activities of stock market in Nepal.It is the single stock exchange in Nepal.It fascilates the transaction of stocks and keeps it regulating through brokers.Security Board of Nepal(SEBON) is also there which also works with NEPSE as a helping hand.SEBON provides the security to markets like making the decision on giving new issuance of shares or not,making market rules,issuing new license to broker etc.It is formed by the government to control over the market activities.

What will be best for Absolute Beginners;Primary or Secondary Market:

So for beginners primary market will be the best where they can learn more and more about the stock market.Beginners should start from applying to IPO shares where risk would be minimum and after gaining knowledges they can slowly shift towards secondary market.Secondary market is the market where profits and risks are both high unlikely that of primary market.Investment is low in primary market and profit would also be low than in secondary market.You can apply for IPO's in a minimun price like Rs.100 per share in most of the IPO's.

How can Beginners collect Knowledges about Stock Market:

Before investing money and time on any thing you should have interests on that thing.So at first you should have interests on stock market and should have that curiosity to learn new things day by day.After that you can learn the things like how stock market works,about the secondary stock market,about the investing ideas etc.You can learn it from any platforms as per your comfort like from google,YouTube,books,articles etc.There are also the mobile applications which can provide you the informations about stock market,freely available in playstores.Also other sources of collecting informations include books and videos.After that you can completly learn about stock market within a several months and ready to make bigger investments.

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