A DEMAT account is used to store the company shares that you own in dematerialized form. It is easy to open Demat account in Nepal. That means that the physical share certificates that we used previously will be converted and stored in a digital form. The account capable of holding such shares is known as a DeMat account.
In order to open demat account, original and photocopy of citizenship certificate, one passport size photo and duly filled application form along with fees, if any, as well as every DP charges a fee of Rs 25 per transaction of securities.
Different banks have different fees in order to open DEMAT account i.e. for NMB capital ltd offers DEMAT account service at Rs 150, for NIBL capital markets ltd offers its customers to open DEMAT account for free, prabhu bank offers free for its share holder and rs 150 for non share holder, NIC asia offers free account service through Share Subidha Bachat Khata , siddartha bank also offer Rs 150 to open demat account, etc and likewise, many others company offers different rates to open 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), you need to have a DEMAT account. This has made it possible for quicker transactions and ownership transfer. Please note that the fees are Account Opening Charge: Rs. 50, Annual Account Maintenance Charge: Rs. 100. Total: Rs. 150.
HOW TO OPEN DEMAT ACCOUNT IN NEPAL
To Open a DEMAT account to store company shares 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 share checkbook so that you can sell shares.
To 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. For further information we can visit different sites i.e. DMAT account help and we can do google search to collect more information related to open DEMAT account. DEMAT account can be used for saving purpose , as we can save our money for future reference.