Nepal Stock Exchange (NEPSE)

Category

Finance & Banking

Key Facts

Nepal Stock Exchange (NEPSE)

The Nepal Stock Exchange (NEPSE) is the sole stock exchange in Nepal, responsible for facilitating capital formation and secondary market trading of securities.

Key Facts

Establishment: Incorporated on June 13, 1993 (Asadh 10, 2050 BS) and opened its trading floor on January 13, 1994.
Regulatory Body: Supervised and regulated by the Securities Board of Nepal (SEBON).
NEPSE Index: The benchmark stock index of Nepal. It reached an all-time high of over $3,200$ points in August 2021.
Transition to Automation: Shifted from an open-cry system to semi-automated trading in 2007, and eventually launched the fully automated NEPSE Online Trading System (NOTS).

Market Structure & Demographics

Sectoral Composition: Dominated historically by BFIs (Banks and Financial Institutions) and insurance companies, with a rapidly increasing share of hydropower companies.
Retail Boom: Features over $6\text{ million}$ demat (dematerialized) accounts as of 2024, representing one of the highest stock-market participation rates relative to population size in South Asia.

Digital Infrastructure

MeroShare: A centralized web and mobile application operated by CDSC (Central Depository System and Clearing Ltd.) for managing demat holdings, tracking portfolios, and applying for IPOs (Initial Public Offerings).
TMS (Trade Management System): The web portal provided by broker firms allowing retail investors to execute buy and sell orders directly in real-time.