Review of Top DEMAT and MeroShare Services in Nepal

For anyone looking to invest in the Nepal Stock Exchange (NEPSE), having a DEMAT account and using the MeroShare platform are essential first steps. DEMAT accounts hold your shares electronically, while MeroShare is the official platform for managing your IPO applications, transfers, and other share-related activities.

Choosing the right service provider for your DEMAT account and understanding the functionalities of MeroShare are crucial for a smooth investment journey. In this blog post, we’ll review some of the top DEMAT account providers and highlight the key features of the MeroShare system in Nepal.

Understanding DEMAT Accounts in Nepal

A DEMAT (Dematerialized) account is like a bank account for your shares. Instead of holding physical share certificates, your ownership of shares is recorded electronically. In Nepal, you can open a DEMAT account through various Depository Participants (DPs), which are usually banks or brokerage firms.

Key Factors to Consider When Choosing a DEMAT Service Provider:

• Account Opening Charges and Annual Maintenance Charges (AMC): Different DPs have varying fee structures. Compare these costs before opening an account.
• Ease of Account Opening: The process should be straightforward and not too time-consuming. Many providers now offer online account opening facilities.
• Customer Service and Support: Responsive and helpful customer service is essential for resolving any issues you might encounter.
• Integration with Trading Platform: If you plan to actively trade, the ease of linking your DEMAT account with your broker’s trading platform is important.
• Additional Services: Some DPs might offer value-added services like research reports or educational resources.

Top DEMAT Service Providers in Nepal (Based on General Reputation and Service):

While specific rankings can fluctuate, some of the generally well-regarded DEMAT service providers in Nepal include:

• Leading Commercial Banks: Most major commercial banks in Nepal (e.g., Nabil Bank, Nepal Investment Mega Bank, Himalayan Bank, Rastriya Banijya Bank, etc.) offer DEMAT account services. They often have wide branch networks and established reputations.
• Reputable Brokerage Firms: Several well-known brokerage firms also act as DPs (e.g., Naasa Securities, Arya Tara Investment & Securities, etc.). They may offer more integrated trading and DEMAT services.

Note: It’s always advisable to check the latest fee structures and customer reviews before choosing a provider.

Exploring the Features of MeroShare

MeroShare is a web-based platform developed by CDSC (Central Depository Services Ltd.) that allows investors in Nepal to manage their shareholdings and related activities online. It is linked to your DEMAT account and is an indispensable tool for participating in the Nepali stock market.

Key Features of MeroShare:

• Online IPO Application: You can apply for Initial Public Offerings (IPOs), Further Public Offerings (FPOs), and Rights Issues directly through the MeroShare platform, eliminating the need for physical forms.
• View Your Shareholdings: MeroShare provides a real-time view of all the shares held in your DEMAT account across different companies.
• Track Transaction History: You can access a detailed history of your share transactions, including buy and sell orders, transfers, and bonus shares.
• Beneficiary Owner (BO) Information Management: You can update your personal details and bank account information linked to your DEMAT account through MeroShare.
• Share Transfer (Off-Market Transfer): MeroShare facilitates the transfer of shares between DEMAT accounts outside of the regular trading system (e.g., for gifts or inheritance).
• My ASBA (Applications Supported by Blocked Amount): MeroShare integrates with the ASBA system, allowing the application money for IPOs to be blocked in your bank account instead of being debited upfront.
• View Allotment Results: After the allotment of IPOs, you can check your results directly on the MeroShare platform.

Accessing and Using MeroShare:

To use MeroShare, you need to:

1. Open a DEMAT Account: You will receive a CRN (Customer Registration Number) from your DP when you open a DEMAT account.
2. Register for MeroShare: Visit the CDSC website or your DP’s portal and register for MeroShare using your CRN and other required details. You will typically need to pay a nominal annual fee for MeroShare services.
3. Log In: Once registered, you can log in to the MeroShare platform using your username and password.

Tips for Using DEMAT and MeroShare Effectively:

• Keep Your Credentials Secure: Protect your DEMAT account and MeroShare login details to prevent unauthorized access.
• Regularly Update Your Information: Ensure your contact details and bank account information in your DEMAT and MeroShare accounts are up-to-date.
• Familiarize Yourself with MeroShare Features: Explore all the functionalities of MeroShare to make the most of the platform.
• Contact Your DP for Assistance: If you face any issues with your DEMAT account or MeroShare, don’t hesitate to reach out to your DP’s customer support.

Frequently Asked Questions (FAQs)

Conclusion

Choosing the right DEMAT service provider and effectively utilizing the MeroShare platform are fundamental for participating in the Nepali stock market. By considering the factors discussed and familiarizing yourself with the features of MeroShare, you can streamline your investment process and manage your shareholdings with ease. Remember to research different DEMAT providers and select one that best suits your needs.