How to sell IPO share in Nepal? Complete guide 2023

How to sell IPO share in Nepal is one of the most ongoing questions among beginners nowadays. As everyone is aware, Nepal has seen a sharp increase in the number of people participating in the stock market recently. In reality, the number grew after MeroShare launched an online platform for IPO purchases on the Nepal Stock Exchange.

However, selling IPOs has proven to be a significant challenge for newbies. As a result, we will walk you through every step of the process of selling IPO shares in Nepal in this blog.

How to sell IPO share in Nepal?

Basically, in order to sell an IPO, you must enter the secondary market. Similarly, you must create a TMS account so that you can buy or sell an IPO online from your home. Well, in order to create a TMS account, you must visit the nearest broker office in your area.

In general, Nepal presently has 50 licensed stock brokers. You can check the list of broker offices here.

Lists of documents needed to create a TMS account.

  • Citizenship
  • Bank Account Details
  • Demat Account Details
  • 2 Passport Size Photos

After filling up the TMS account form in the broker’s office, they will send you the user id and password in your email account within 3 to 4 days.

Complete Guide On How To Sell IPO Share In Nepal

After receiving your user id and password, you may now access your TMS account using the URL provided in your email. You will now see the NEPSE dashboard after logging in, as illustrated in the image below.

How to sell IPO share in Nepal

Simply go to Order Management on the left menu and click on Buy/Sell. After clicking, a new dashboard will appear, as shown in the image below.

How to sell IPO shares in Nepal?

Then, on the top right of the screen, select “SELL.” You should get a red screen after clicking “SELL.” Now, enter the stock symbol for the company you want to sell. Likewise, enter the number of shares you wish to sell and the share price, and then click on “SELL.”

You may now monitor the status of the share on the Daily Order Book. Go back to the Order Management tab on the left menu and select “Daily Order Book.” The status of the share you sold will be displayed here. If it is in the “Open” column, you can edit or cancel the process. If it is already in the “Completed” column, your IPO share has already been sold.

How to buy or sell IPO share in Nepal

After your IPO share has been sold, you will get an SMS from your broker’s office at about 3:30 p.m. The SMS will appear as in the image below.

Note: Now that you have received the SMS, you must complete a number of tasks before 3 PM the next day to avoid paying a 20% fine.

3 Basic Things to do to sell IPO shares in Nepal

  • WACC Calculation (Weighted average cost of capital)

The first step is to perform the WACC calculation. So, go to your MeroShare account and sign in. Then navigate to My Purchase Source. Select the stock symbol of the IPO Share that you sold in the Scrip column and click Search.

Now, a new interference will appear on your dashboard. Just check the two boxes as shown in the image below and click Proceed.

3 Basic Things to do to sell IPO shares in Nepal

A confirmation message will show on your dashboard once you click Proceed. Simply check the confirmation box and press the Update button. In this way, your WACC calculation is now complete.

  • My Holdings Calculation

Note: You must now wait for 5 to 6 hours before starting the My Holdings calculation. As a result, you may proceed the next day.

Go to My Purchase Source on your MeroShare account. Go to My Holdings, then in the Scrip column, enter the stock symbol of your IPO Share and click Search.

My Holdings Calculation

A new interference will now display on your dashboard once you click Search. The holding period of your IPO share is displayed here. According to Nepal Government tax legislation, if the holding period exceeds one year, a 5% tax would be levied on your IPO share transaction. Similarly, if the holding period is less than a year, a 7.5% tax will be levied.

Well, now simply tick the two boxes as shown in the image below and click Proceed. A confirmation message will show on your dashboard once you click Proceed. Simply click on confirm and then Update. In this way, your holdings calculation will be successfully saved.

My Holdings Calculation - MeroShare
  • My EDIS

My EDIS is the final and most critical process you must do before selling your IPO Share in Nepal. Simply navigate to My EDIS at the bottom of the menu. Then choose Transfer Shares. A new dashboard will appear, displaying the Settlement ID, Settlement Date, and a View Detail option.

Simply click View Detail, and a new interference will display. Simply check the two boxes as shown in the figure below and click Proceed.

My EDIS

After you click Proceed, a confirmation notice will show on your dashboard. Simply check the box and click Confirm. In this way, your EDIS will be successfully saved.

Note: Please visit your broker’s office if My EDIS is not working correctly on your MeroShare account. Because you will be fined 20% if you do not finish your EDIS transaction by 3 PM.

Conclusion

Well, we hope you understand the entire procedure of how to sell IPO shares in Nepal. Finally, you may easily sell your IPO shares from home by simply following the steps outlined above. At last, once all of the processes are completed, the IPO share amount will be instantly sent into your bank account within 3 to 4 days.

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