A DEMAT account is used to store the share of the company you own in dematerialized form. Dematrilized means that no physical share certificates are provided now on. All shares will be converted to the digital form and stored in a digital form. The account capable of holding such shares is known as a DeMat account.
The same account is used for share transactions. Now, when you buy and sell stock in the primary (IPO) as well as secondary markets (via brokers trading account), all share will be reflected in your DEMAT account. This has made it possible for quicker transactions and ownership transfer.
Please note that the normal fees are:
- Account Opening Charge: Rs. 50
- Annual Account Maintenance Charge: Rs. 100.
Making up a total of Rs. 150. It also depends on the different service provider some are providing in free as promotional campaign.
How to Open a DEMAT account in Nepal? Follow these steps:
- Find a company providing the service. For example Kriti Capital, NIBL Capital, NMB Capital, Global IME Capital and other Capital markets as well as your stock broker’s office.
- Fill up the form. You will need an attested Nepali citizenship photocopy and a passport size photograph for the form.
- Submit the form.
- It will usually take a few days for them to set it up. You will receive a shared checkbook so that you can sell shares.
What are the required documents to open DEMAT Account?
- Citizenship Certificate
- Updated KYC Form and application
- Passport Size Photo
- Pay applicable fee for the demat
- PAN number to make transaction above Rs.500,000
- For Company
- Company Registration Certificate/Firm Registration Certificate
- MOA & AOA
- PAN Certificate
- Minutes or Application
How to convert and deposit your physical share certificates in your Demat account:
- Take your physical share certificates to the place where you opened your Demat account.
- Fill up a form with the correct signature for the Demat account as well as the signature that is in the company.
- Submit the form.
After they enter it in the system, you can take the documents to the share registrar of your company and submit it for dematerialization on your own. You can also let your Demat company do the submission job for you. If you do it yourself you might save some time. But even after you submit the shares for dematerialization, you will have to wait weeks and even a month or so to get all the shares deposited in your account.
Where can I Open DeMat Account?
To Open a Demat account you need to visit any DPs those are licensed by Central Securities Depository from Securities Board of Nepal (SEBON). A Depository Participant (DP) is an intermediary between the investor and the depository. Depository participants are mainly banks and brokers.
Some of the banks are licensed as DP so you can open your account from any of those banks. You can ask for DEMAT form from the bank. It would take about a week.
Under the Centralized Applications Supported by Blocked Amount (C-ASBA) system, investors should first get C-ASBA Registration Number (CRN). So you need to fill the C-ASBA Registration Form.
To access your Demat account online you need to fill the Mero Share Application form. For now, you can apply for IPO only through the online portal. Meroshare application fee is Rs. 50
Below are the selected lists of Depository Participants (DP) offering DEMAT services to its clients additionally you can open DeMat account directly from brokers they will also guide you through the requirements You can see here complete list of broker in Nepal.:
NMB Capital Ltd
NMB Capital Ltd offers DEMAT account service at Rs 150. NMB has both online and mobile services relating to DEMAT services. NMB provides DEMAT account services from all NMB branches.
NIBL Capital Markets Ltd
NIBL Capital is offering its customers to open DEMAT account for free. With online DEMAT services. DEMAT account can be opened at any branches of Nepal Investment bank Ltd. (NIBL) and NIBL Capital Markets Ltd, Lazimpat Kathmandu.
Prabhu Bank has offered free DEMAT account services to its shareholder while non-shareholders can open DEMAT account for a fee of Rs 150. DEMAT account can be opened from the head office of Prabhu Bank, Babarmahal, Kathmandu.
NIC Asia offers free DEMAT account service through Share Subidha Bachat Khata. They have online DEMAT services for free of cost for the first year. All the branches of NIC Asia provide DEMAT services.
Kriti Capital and Investment Ltd.
Kriti Capital offers DEMAT account services at Rs 150. Kriti Capital is in the process of providing online DEMAT services within a month. It is located at Mathuri Sadan, Ravibhawan, Kathmandu.
NABIL Investment Bank Ltd.
NABIL Investment Banking Ltd offers DEMAT account services at Rs 150. It will be providing online DEMAT account services within a couple of week. Till date it has around 3000 DEMAT account holders. The DEMAT service is available at Naxal, Kathmandu.
Laxmi Capital Market Ltd
Laxmi Capital Market offers DEMAT account services at Rs 150.It also provides SMS service to its DEMAT account holders. Laxmi Capital has around 3000 DEMAT account holders till date. Interested candidates can open DEMAT account in Laxmi Capital Market office and from all the branches of Laxmi Bank.
Siddhartha Bank offers DEMAT account services at Rs 150. The service can be gained from 50 branches of Siddhartha Bank.
Everest Bank Limited
Everest Bank Limited like other banks provide DEMAT account service at Rs 150. the service has been made available in 2 branch offices of Everest Bank. The bank will soon initiate its online DEMAT services within a week.
Bank of Kathmandu
Bank of Kathmandu charges Rs 150 for its customers to open DEMAT account. The service is available at head office, Kamaladi ,Kathmandu .