Background of Nepse

What does NEPSE mean?

Have you heard of the terms NYSE or NASDAQ? Or even companies like Apple or Samsung? Likewise, NEPSE stands for "Nepal Stock Exchange". Just like Apple or Samsung are traded in NYSE or NASDAQ, NEPSE is where companies like NTC and Unilever are traded in. NEPSE is Nepal's very own stock market. It is the only one available for now.

About NEPSE:

• The paid-up capital of NEPSE is NRs.50,00,00,000.

Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock.

• The market capitalization of NEPSE is NRs.345,276 crore.

Market Capitalization is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.

• There are currently 186 scrips listed on NEPSE.

Scrips refer to a provisional certificate of money subscribed to a bank or company, entitling the holder to a formal certificate and dividends. (also known as symbol; eg. STC stands for Salt Trading Corporation)

• The total number of investors in NEPSE is nearing 300,000.

• Percentage of Shareholdings by respective shareholders:

  • 1. Government of Nepal : 58.66%

    2. Nepal Rastra Bank :14.60%

    3. Employees Provident Fund :10.00%

    4. Rastriya Banijya Bank : 6.14%

    5. Laxmi Bank : 5.00%

    6. Prabu Bank : 5.00%

    7. Others : 0.64%

This data means, for example, Government Of Nepal owns 58.66% of shares in the market.

• At present, there are 50 member brokers who operate on the trading floor as per the Securities Act, 2063 (2007), Securities Regulation, and by-law. The broker house and its branches are expanded over 21 different cities of Nepal.

Who governs NEPSE?

• Security Exchange Board (SEBON) and NEPSE set the rules and regulations for stock trading.

• Nepal Rastra Bank(NRB) for Bank and Financial Institution.

• Beema Samiti (Insurance Board) for insurance companies.

The companies have to meet their conditions set by their respective governing entities to trade the stock.

What can we trade in NEPSE?

1.Shares

Equity Shares

Preference Shares

2.Debentures

3. Government Bond

4.Mutual Funds

Where can we trade ?

There is NEPSE Online Trading System(NOTS) which is where all buying and selling takes place.

What time does the trading take place and when does the market close?

Trading occurs on all days except for Saturdays and Public Holidays. Public Holidays are declared in advance by NEPSE.

On trading days, the market opens from 11:00 a.m. to 3:00 p.m.

On Fridays, only odd lot trading occurs. Odd lot trading of less than 10 units are allowed on regular days.

More Information Links:

https://en.wikipedia.org/wiki/Nepal_Stock_Exchange

http://www.nepalstock.com/about-us/introduction