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

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.