How to Open a Demat Account in Nepal for Nepalese Living Abroad (NRNs)

A Demat (Dematerialized) account is essential for trading and investing in the Nepalese stock market. Whether you are a student, worker, or traveler living abroad, you can still open a Demat account in Nepal and start investing in stocks, mutual funds, or government bonds. This guide will walk you through the step-by-step process of opening a Demat account while living overseas, considering two scenarios:

• If you already have a Nepalese bank account

• If you need to open a Nepalese bank account before applying for a Demat account

Who Are Non-Resident Nepalese (NRNs)?

Non-Resident Nepalese (NRNs) are Nepalese citizens who reside outside Nepal for work, study, or other purposes. The Nepalese government allows NRNs to invest in Nepal’s stock market through a Demat account, helping them stay financially connected to their home country.

What is a Demat Account?

A Demat account is an electronic account that holds your shares and securities in digital format. It eliminates the need for physical certificates and ensures safe, hassle-free trading. If you want to invest in the Nepal Stock Exchange (NEPSE), a Demat account is a must-have.

Why Should Nepalese Living Abroad(NRNs) Open a Demat Account?

1. Investment Opportunities: The Nepalese stock market is growing, and investing early can be beneficial.

2. Diversification: Instead of keeping all your savings in foreign banks, you can diversify by investing in Nepalese stocks and bonds.

3. Easy Access: With online trading platforms, you can manage your investments from anywhere in the world.

4. Long-term Wealth Building: Investing in stocks, IPOs, and mutual funds can help grow your wealth over time.

5. Legal Investment Option for NRNs: The Nepal Rastra Bank (NRB) allows NRNs to invest in Nepal’s financial market under certain guidelines.

Requirements to Open a Demat Account from Abroad (For NRNs)

If You Already Have a Nepalese Bank Account:

• A copy of your Nepalese citizenship certificate (If you are a Nepalese citizen) or NRN ID Card (for NRN investors)

• A copy of your valid passport

• A copy of your visa or residence permit of the country you are residing in

• A passport-sized photo

• Your Nepalese bank account details

• Your contact details (Nepali mobile number or email for verification)

• An authorized representative in Nepal (optional but recommended for faster processing)

If You Do Not Have a Nepalese Bank Account:

NRNs must first open an NRN bank account in Nepal before applying for a Demat account. The process for opening an NRN bank account includes:

• A copy of your NRN ID Card (issued by the Nepalese government)

• A copy of your valid passport and visa/residence permit

• Proof of income or employment (if required by the bank)

• A minimum deposit amount as per the bank's policy

• Online or physical submission of forms to the bank

Once the bank account is opened, you can proceed with the Demat account application.

Step-by-Step Process to Open a Demat Account from Abroad (For NRNs)

Step 1: Choose a Depository Participant (DP)

A Depository Participant (DP) is a bank, brokerage firm, or financial institution that offers Demat account services. Some popular DPs in Nepal include:

• NMB Capital
• NIC Asia Capital
• Global IME Capital
• Sanima Capital
• Nabil Investment Banking
• Prabhu Capital
• Kumari Capital

Visit the official website of the DP you choose to check their online application process.

Step 2: Download and Fill Out the Demat Account Form

Most DPs provide an online form that you can download, fill out, and submit electronically. If the online option is not available, you may need to print the form, fill it manually, and send it via courier.

Step 3: Notarize Your Documents

Since you are applying from abroad, you may need to notarize your documents. Visit the Nepalese embassy, consulate, or a notary public in your residing country to get your documents attested.

Step 4: Submit the Application and Documents

Send the filled application form and notarized documents via email or courier to the DP’s office in Nepal. Some DPs also allow submission through an authorized representative in Nepal.

Step 5: Pay the Demat Account Opening Fees

The typical fees for opening a Demat account in Nepal range from Rs. 50 to Rs. 1000, depending on the DP. You may also need to pay an annual maintenance fee.

Step 6: Receive Your BOID (Beneficiary Owner Identification Number)

Once your application is approved, you will receive a BOID (Beneficiary Owner Identification Number), which is unique to your Demat account. Keep this number safe as it is required for all future stock transactions.

How to Access and Manage Your Demat Account Online

After successfully opening your Demat account, you can monitor and manage your investments through:

1. Meroshare (https://meroshare.cdsc.com.np/): A web-based platform where you can apply for IPOs, check your portfolio, and transfer shares.

2. TMS (Trading Management System): Provided by brokerage firms for real-time stock trading.

3. Mobile Banking Apps: Some banks integrate Demat services into their mobile apps for easy access.

Additional Tips for NRNs Investing in Nepal

• If you plan to invest in IPOs, ensure your Meroshare account is activated.

• Keep your Nepalese bank(NRN bank account) account active for financial transactions.

• Appoint a trusted representative in Nepal to handle paperwork if needed.

• Stay updated with NEPSE news to make informed investment decisions.

• Consider NRN-specific investment schemes offered by banks and financial institutions in Nepal.

Conclusion

Opening a Demat account in Nepal while living abroad is a straightforward process. Whether you already have a Nepalese bank account or need to open one first, this guide ensures you can navigate the process smoothly.

By following these steps, Non-Resident Nepalese (NRNs) can easily start investing in the Nepal Stock Exchange (NEPSE) and take advantage of Nepal’s growing financial market. Whether you're a student, worker, or traveler, investing in Nepal’s stock market can be a great way to grow your wealth and stay financially connected to your home country.

Note: Always consult with authorized financial advisors or institutions to ensure compliance with the latest regulations and requirements.

FAQs

1.Can NRNs apply for IPOs in Nepal?

Yes, NRNs can apply for IPOs, mutual funds, and secondary market trading through their Demat account.

2. How long does it take to open a Demat account from abroad?

The processing time varies by DP but usually takes 5–10 working days once all documents are submitted.

3. Can I open a Demat account without a Nepalese bank account?

No, you need a Nepalese bank account (NRN bank account also works) for financial transactions.

4. What should I do if I don’t have a representative in Nepal?

Many DPs allow remote submission of documents, but having a representative can speed up the process.

5. Do I need to notarize my documents?

Some DPs require notarized copies of documents, while others accept self-attested or scanned copies. It's best to check with the DP before proceeding.

6. Are there any restrictions on the types of stocks NRNs can buy?

NRNs can invest in most stocks but should check Nepal Rastra Bank’s guidelines for any restrictions.

7. What fees are associated with a Demat account?

Opening fees range from Rs. 50 to Rs. 1000, with an annual maintenance fee applicable.

8. Can NRNs repatriate their investment earnings?

Yes, but they must follow Nepal Rastra Bank regulations regarding fund repatriation.

9. Is an NRN ID mandatory to open a Demat account?

If you are a Nepalese citizen, an NRN ID is not mandatory; your Nepalese passport suffices.