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Demat Account

Market Guide · guide 2 of 7 · Basic · about 8 min

Understand the Market. Evaluate the Evidence. Own the Decision.
Portexa cuts through market noise and transforms data into structured intelligence — bringing together trends, momentum, volume, risk, valuation, and market activity so you can identify what matters and act with confidence. We provide the intelligence. You make the call.
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Guide 2 of 7 · Open your accounts

Opening and using a Demat account

A Demat account is where your shares live. This guide covers what it is, who can open one for you, the documents and fees, what you receive, and how it connects to MeroShare and your broker — so your first visit to the counter takes one trip.

On this page

    What a Demat account is

    A digital locker for shares, kept by the central depository.

    A Demat (dematerialised) account holds your shares as electronic records instead of paper certificates. It is maintained by CDS and Clearing Ltd (CDSC), Nepal's central depository, and opened for you by a depository participant (DP) — a bank, broker or merchant banker licensed by CDSC. Your account is identified by a 16-digit BOID (beneficiary owner ID); the first eight digits identify your DP.

    The bank-account analogy. A bank account holds money and a Demat account holds shares. Buying credits it, selling debits it, and a bonus issue is deposited into it — you never handle a certificate.

    Why every investor needs one

    Buying and selling

    NEPSE trades settle into and out of Demat accounts only. Without one you cannot receive shares you buy.

    IPO applications

    Every IPO, FPO and rights application through MeroShare needs the BOID the shares will be credited to.

    Bonus and rights shares

    Corporate actions are credited straight to the account — no forms, no visits.

    One statement

    Every holding across every company on one screen, with the transaction history behind it.

    What to bring

    Four documents for an adult; a guardian signs for a minor.

    Documents

    • Citizenship certificate — original for verification, two photocopies.
    • PAN — a copy. You can open a Demat without it, but you need it for a trading account and to sell.
    • Two passport-size photographs — recent, colour.
    • Bank account proof — a cheque copy or a recent statement in your name; dividends are paid into this account.

    Forms the DP gives you

    • Demat account opening form with the KYC (know-your-customer) section.
    • MeroShare application — usually the same form; tick it.
    • Nominee declaration — optional, strongly recommended.
    • Agreement — the DP's terms, fees and your signature specimen.
    Names must match exactly. The name, father's name and date of birth on the form must match the citizenship certificate letter for letter, and the bank account must be in the same name — a mismatch is the most common reason a dividend or IPO refund bounces.
    Opening for a child. A minor's Demat needs the birth certificate, the guardian's citizenship, photos of both, and the guardian's signature; the guardian operates it until the child turns 16 and updates the account with their own citizenship.

    Opening the account, step by step

    One visit, one to two working days to activate.

    1. Choose a depository participant

      Any commercial bank branch, most brokers and several merchant bankers are DPs. Choose on convenience: the bank you already use lets one visit cover the Demat, MeroShare and the bank link; a broker DP puts the trading account in the same office.

    2. Fill in the forms

      Personal details as on the citizenship certificate, contact details (your mobile number receives every OTP from here on), occupation, bank account, nominee, and your signature specimen. Tick the MeroShare box.

    3. Submit and pay

      Hand over the forms and copies with the originals for verification, and pay the opening fee and the first year's charges (see the fee table). Keep the receipt.

    4. Receive your BOID and MeroShare login

      Within one to two working days you get the 16-digit BOID, and by SMS or email a MeroShare username with a temporary password. Sign in and change it the same day.

      Two more things while you are there. Ask the bank for your CRN (C-ASBA registration number — you need it to apply for IPOs) and confirm the bank account is linked for dividends.

    Fees and charges

    Set by CDSC's published schedule; DPs collect them.

    ChargeTypical amountWhenNotes
    Account openingRs 50OnceSome DPs waive it during promotions.
    Annual maintenanceRs 100 / yearYearlyCollected by the DP; the account is suspended if it lapses.
    MeroShare renewalRs 50 / yearYearlyPaid online inside MeroShare or at the DP.
    DP transaction chargeRs 25Per sale, per companyCharged when shares leave the account (a sale); buying is free.
    DematerialisationRs 25–50 per certificateOnceOnly if you still hold paper certificates.

    Figures follow the CDSC fee schedule in force at the time of writing; confirm the current amounts with your DP.

    How it connects to everything else

    Demat holds, MeroShare shows and applies, the broker trades, the bank pays.

    1. Bank account

      Money in and out: purchases, sale proceeds, dividends, IPO refunds.

    2. Demat (CDSC)

      The record of what you own. Credited on T+2 after a buy, debited when you sell.

    3. MeroShare

      Your window into the Demat: apply for IPOs, see holdings, send the EDIS transfer when you sell.

    4. Broker (TMS)

      Where orders are placed and matched on NEPSE.

    You buy
    Order on the broker's TMS → matched on NEPSE → shares credited to your Demat and money debited from your broker balance on T+2.
    You sell
    Order on TMS → matched → you transfer the shares to the broker's pool through EDIS in MeroShare by T+1 → money paid to your bank on T+2.
    IPO
    Apply in MeroShare (My ASBA) with your CRN → money blocked in your bank → allotted shares credited to the Demat, unallotted money released.
    Bonus / rights
    Credited to the Demat after the book close is processed; rights need an application in MeroShare first.

    Before you leave the counter

    Five things to confirm so nothing bounces later.

    • Your BOID is written on the receipt and matches the SMS you received.
    • Your mobile number on the form is the one you carry — it receives every OTP.
    • The bank account is linked for dividends and in exactly the same name.
    • You have the CRN from the bank for IPO applications.
    • You have changed the temporary MeroShare password and set the transaction PIN.
    Next stepSet up and use MeroShare

    IPOs, holdings and the EDIS transfer

     ThenOpen a trading account and place an order

    Order types, hours, T+2 and costs

    What to remember

    • A Demat account holds your shares electronically; a depository participant (a bank, broker or merchant banker) opens it for CDSC.
    • Bring your citizenship certificate, PAN, two photos and bank proof — and make every name match the citizenship certificate letter for letter.
    • You receive a 16-digit BOID and a MeroShare login within one to two working days; change the temporary password the same day.
    • Ask the bank for your CRN before your first IPO, and confirm the bank account is linked for dividends.

    About this guide. Written for investors in the Nepal Stock Exchange. Fees, tax rates, market hours and price bands follow the schedules published by NEPSE, SEBON, CDSC and the Inland Revenue Department and change from time to time — confirm the current figure with your broker or depository participant before you act on it. Nothing here is investment advice.