The Nepal Stock Exchange Limited is also known as NEPSE in short. It is the only Stock Exchange of Nepal. It is government owned and is based in Kathmandu, Nepal. All trading is done from its location at Singha Durbar Plaza. Nepal Stock Exchange does its trading of securities in Nepali Rupees. As of February 24, 2016, the market capital of Nepal Stock Exchange is US$ 11.93 Billion. The equity market capitalization of the companies listed on NEPSE was approximate US$ 7896 million on March 23, 2014.
The Nepal Stock Exchange has been established to impart free marketability and liquidity to the corporate and government securities by facilitating transactions in its trading floor through the member, market intermediaries, such as a broker, market makers, etc. Founded in 1993, the trading floor was officially opened on 13 January 1994.
Within a short span of time, the companies started going public and started trading their securities. 334 companies have been listed in the Nepal Stock Exchange as of April 4, 2013. The list of the companies includes Hydro Power Companies, Commercial Banks, Insurance Companies and Finance Companies and others.
The Nepal Stock Exchange and its trading reach are very small compared to other nations. Moreover, Nepal is a developing nation and is yet to establish financial strength. But Nepal has almost 80 years long history when it comes to the securities market. It began in 1937 along with the floatation of shares by Biratnagar Jute Mills Ltd and Nepal Bank Ltd. In 1964, a major development took place with the first issuance of Government Bond. It followed the introduction of the Company Act in 1964. Later, the Securities Exchange Center Ltd was established in 1976.
The Securities Exchange Center established then was responsible for facilitating and promoting the growth of capital markets. Later, it was converted into Nepal Stock Exchange. Before the conversion, it was the sole institution looking after the capital market and undertaking the responsibilities of brokering, underwriting, managing public issue, market making for government bonds and other related financial services. The conversion to Nepal Stock Exchange was done in 1993 by Nepal Government.
Nepal Stock Exchange brokers
There are 62 member brokers associated with the Nepal Stock Exchange currently. They have permission to undertake the job of buying and selling government bonds and listed corporate securities as intermediaries. They operate on the trading floor as per the Securities Act, 2007, rules and by-laws.
There are various types of securities available for trading on the Nepal Stock Exchange. Under the category of Shares, Equity Shares and Preference Shares can be traded. Similarly, trading of Debentures also takes place in NEPSE. Government Bonds and Mutual Funds are the other securities available for trading on the Nepal Stock Exchange. All the purchase and sales of Physical as well as dematerialized securities is done through trading system NATS. NATS stands for NEPSE Automated Trading System. It is a fully screen based automated trading system. This trading system adopts the principle of an order driven market.
The Nepal Stock Exchange is open for trading on all weekdays except Saturdays and holidays declared by the exchange. Odd-lot trading is done on Friday. The market opens at 11:00 AM. Meanwhile, the market closes at 15:00 PM.
Nepse App for Mobile
Nepse has its own android application to make people in Nepal easier. It shows real time stock exchange data on a mobile phone. Regular update of market data along with real-time statistics is another important factor of this application. It shows live trading data from 12 PM to 3 PM during the trading hours. You can even make your own watchlist to analyse one stock for a long time.