The Nepal Stock Exchange (NEPSE) is the heartbeat of Nepal’s financial ecosystem, where shares of publicly listed companies are traded. Established in 1993 and regulated by the Securities Board of Nepal (SEBON), NEPSE operates from Sunday to Thursday (11:00 AM to 3:00 PM). With sectors like banking, hydropower, and insurance dominating the market, understanding key terms is crucial for new investors. Let’s break down the jargon to help you navigate Share Karobar like a pro!
Nepal Share Market Live: Key Term Explanations for Karobar (Trading)
-
(Initial Public Offering – प्रारम्भिक सार्वजनिक निष्कासन)
A company’s first sale of shares to the public.
- FPO (Follow-on Public Offering): Additional shares issued by an already listed company.
- Right Share: Discounted shares offered exclusively to existing shareholders.
- Bonus Share: Free shares are distributed to shareholders from company profits.
- Auction Share: Shares sare old via competitive bidding for transparency.
Regulatory Bodies & Platforms
- SEBON: Oversees market regulations and investor protection.
- NEPSE: The sole platform for buying/selling shares in Nepal.
- CDSC: Manages secure digital storage and settlement of shares.
Account & Identification Terms
- BOID: A 16-digit number identifying shareholders.
- Demat Account: Holds shares electronically (no physical certificates).
- DP (Depository Participant): Brokers who manage Demat accounts.
Trading Systems & Tools
- TMS (Trading Management System): Online platform for executing trades.
- Mero Share: Apply for IPOs, check dividends, and track shares.
- C-ASBA: Block funds in your bank account during IPO applications.
- EDIS: Digital permission slip for selling shares.
- CRN: Unique number linking your bank account to C-ASBA.
Market Categories
- Secondary Market: Where existing shares are traded (e.g., NEPSE).
- Bull Market: Rising prices; investor optimism.
- Bear Market: Falling prices; investor caution.
- Promoter Share: Held by company founders.
- Public Share: Available for general trading.
Market Indicators & Metrics
- NEPSE Index: Tracks overall market performance.
- Sensitive Index: Measures the performance of top banks.
- Float Index: Reflects prices of publicly available shares.
- 52-Week High/Low: A stock’s highest/lowest price in a year.
- Turnover: Total value of shares traded daily.
Financial Metrics
- EPS (Earnings Per Share): Profit per share.
- P/E Ratio: Compares share price to earnings (indicates valuation).
- Dividend Yield: Annual dividend as a % of share price.
- NAV (Net Asset Value): Per-unit value of mutual funds.
Investment Concepts
- Circuit Breaker: Halts trading if NEPSE fluctuates by 2%, 4%, or 6%.
- Lock-in Period: Temporary restriction on selling shares (common in IPOs).
- Portfolio Diversification: Spread investments to reduce risk.
- Liquidity: Ease of buying/selling shares without price impact.
Additional Key Terms
- BFI (Banking & Financial Institution): Banks and finance companies.
- GDP: Measures Nepal’s economic output.
- AGM/SGM: Annual/Special meetings where shareholders vote on key decisions.
Why This Matters for New Investors
Understanding these terms helps you:
- Analyze companies using EPS and P/E ratios.
- Navigate IPO applications via Mero Share and C-ASBA.
- Track market trends with the NEPSE Index and Sensitive Index.
Final Tips for Success
- Start with a Demat Account and BOID.
- Use Mero Share for IPO applications.
- Follow SEBON updates for regulatory changes.
- Diversify across sectors like banking and hydropower.
Got Questions?
Drop them in the comments! Whether you’re confused about Right Shares or curious about Bull vs. Bear Markets, let’s build your Share Karobar knowledge together.
Disclaimer: This guide is for educational purposes. Consult a financial advisor before investing.