Nepal Share Market: Everything you need to know

Nepal Share Market
Nepal Share Market

Almost everyone has started investing in the Nepal Share Market. Some people you may know could be doing well for themselves while some may be in the learning phase. It is a very feasible market for those who learn and understand it. This article talks about the Nepal Share Market basics so you can begin your trading journey.

What is a Share Market?

Before you start trading, it’s important to understand what the share market is. A share market is a financial platform that allows you to buy and sell stocks from someone willing to sell their stocks from the listed companies in NEPSE. 

The share market is a market where traders meet together to buy and sell shares. You can only buy and sell shares of the companies in the market that are listed in the NEPSE.

Share is the smallest unit of the company. You can easily buy shares from the secondary market at a trending price and hold certain ownership of that company. The process of buying and selling shares is moderated by the stock broker in Nepal.

What is the role of NEPSE in the Nepal Share Market?

role of NEPSE in the Nepal Share Market

The main role of the Nepal Stock Exchange (NEPSE) is to provide a regulated platform for buying and selling securities, primarily stocks, in Nepal’s stock market. It makes easy trading, determines market prices, regulates market activities, looks after the listing and delisting of securities, circulates market information, promotes market development, and protects investor interests.

NEPSE is the only stock exchange platform in Nepal that allows you to buy and sell shares and control the market. NEPSE operates under the Securities Act, of 1983. Trading in the Nepal stock market is open for 5 days a week, 4 hours each day i.e. 11 am to 3 pm from Sunday to Thursday.  The timing might change due to national holidays, so remember that.

Who are the Board of Directors of NEPSE?

According to the Securities Act of 2006 (as of Baisakh 2081), the BOD of NEPSE consists of 2 members including a Chairman from the Nepal government, 2 members from Nepal Rastra Bank, and 1 member for Rastriya Banijaya Bank. One member who will act as an expert in the capital market will be nominated by the BOD.

The image of the board of directors is taken from the website of the NEPSE.

the Board of Directors of NEPSE

Here is the list of members of the Board of Directors of NEPSE:

Chairman – Mr. Shovakant Poudel

CEO, Director of NEPSE – Mr. Krishna Bahadur Karki

Director, Representative from Nepal Rastra Bank – Mr. Hem Prasad Neupane

Director, Representative from Nepal Rastra Bank – Mrs. Meena Pandey

Director, Representative from Rastriya Banijaya Bank – Mr. Debesh Prasad Lohani

Director, Representative from Nepal Rastra Bank – Mr. Hem Prasad Neupane

Director, Representative from the Ministry of Finance –  Mr. Krishna Chandra Kafle

Independent director – Mr. Laxmi Prasad Maharjan

What is market analysis?

Market analysis is the thorough analysis of what happens in the market which affects the market. It is the process of researching a specific market.

Interested investors need to conduct a proper market analysis and keep themselves updated. It helps investors make informed decisions.

As an investor, there are mainly two types of market analysis you can conduct:

Technical market analysis

The technical market analysis uses graphical charts and analyses the market using price data and value data. It only considers quantitative measurements. This makes it less in-depth than fundamental market analysis.

Fundamental market analysis

Fundamental market analysis is suitable for long-term investment. It focuses on the qualitative and quantitative factors to assess the intrinsic value of the company. It is a more in-depth analysis as it considers both qualitative and quantitative measurements.

How many companies are listed in the stock market?

As of Baishak 02, 2081 B.S there are 246 companies listed in Nepal’s Stock Market under the different sectors:

S.N Sector No. of companies
1 Commercial Banks 19
2 Manufacturing And Processing 9
3 Manufacturing And Processing 6
4 Hydro Power 91
5 Tradings 2
6 Non-Life Insurance 12
7 Development Banks 16
8 Finance 15
9 Microfinance 51
10 Life Insurance 12
11 Investment 7
12 Others 6
Total 246

How is NEPSE helping the market analysis?

NEPSE has created a platform for interested investors to buy and sell shares and list the companies who want to sell their shares. 

It also plays a big role in helping market analysis:

  • Tracking the NEPSE index: it provides a summary of what is happening in the share market. This helps the investors analyze and make informed investment decisions.
  • Helps with technical analysis: It keeps a record of historical data so that the analysis is making accurate trends.
  • Transparency: All of the data essential to make an informed decision is transparent and available. It improves the efficiency of the market.

Share market is a growing market in Nepal. There are so many risks associated with it and it can be very daunting for beginners. But don’t be afraid, educate yourself as much as you can remember that it will take time before your big breakthrough but, the breakthrough will occur.

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What is the basic knowledge of NEPSE?

You should understand that NEPSE is a 

What basic knowledge is required for the stock market?

You need to know that the stock market is very risky. But the higher the risk, the higher the gain. This means you need to be patient and resilient.

Who owns NEPSE?

The government of Nepal owns NEPSE.

What is the fullform of IPO?

IPO stands for Initial Public Offering which is the shares that a company offers to its potential buyers.

Is Nepse closed on Fridays?

Yes, Nepse is closed on Fridays.

What does NEPSE stand for?

NEPSE stands for Nepal Stock Exchange Limited.