Demat Account in Nepal: How to Open One (CDSC Guide)
A Demat account is the first thing you need to invest in Nepal's share market. Here is what it is, how to open one, and how it connects to Mero Share and IPOs.
What is a Demat account and CDSC?
A Demat (dematerialised) account holds your shares electronically, the way a bank account holds money. Instead of paper share certificates, your holdings sit safely in digital form. All Demat accounts in Nepal are maintained by CDS and Clearing Ltd (CDSC), the national depository, which also runs the Mero Share portal.
What is a BOID?
When you open a Demat account you receive a 16-digit BOID (Beneficial Owner Identification number). This is your unique share-account number — the equivalent of an account number for your shares. You use it (and your DP) when applying for IPOs and when trading.
How to open a Demat account
You open a Demat account through a Depository Participant (DP) — most commercial banks and licensed brokers are DPs. The process:
- Visit a bank or broker that is a DP (many now offer online opening).
- Fill in the Demat application form.
- Submit the documents (below).
- Pay the small opening fee; your Demat account and BOID are issued.
- Ask to also be set up for Mero Share and C-ASBA (with a CRN) at the same time, so you can apply for IPOs immediately.
Documents you need
- A copy of your citizenship certificate (or passport for those abroad).
- Passport-size photos (usually two).
- Your bank account details.
- For Nepalis abroad, additional documents such as a work permit or passport may be required.
Costs and renewal
Opening a Demat account involves a small one-time fee, and both the Demat account and Mero Share carry a small annual renewal fee. The exact amounts are modest and are set by your DP and CDSC — confirm the current figures with your bank or broker, as they are periodically revised. Keep the account renewed so you never miss an IPO window.
Demat vs Mero Share vs trading account
These three are easy to confuse:
- Demat account (CDSC): stores your shares.
- Mero Share: the portal to apply for IPOs and manage your Demat holdings online.
- Broker / TMS account: needed only to buy and sell listed shares on the NEPSE secondary market.
For IPOs you only need the first two; for share trading you add the third.
Frequently Asked Questions
What is a Demat account?
A Demat (dematerialised) account holds your shares electronically instead of as paper certificates. In Nepal all Demat accounts are maintained by CDS and Clearing Ltd (CDSC), the national depository.
What is a BOID number?
A BOID (Beneficial Owner Identification) is the unique 16-digit number for your Demat account — your share-account number, used when applying for IPOs and trading shares.
How do I open a Demat account in Nepal?
Open one through a Depository Participant (DP) — most banks and licensed brokers. Submit a form with your citizenship copy, photos and bank details, pay a small fee, and you receive your Demat account and BOID. Ask to also enable Mero Share and C-ASBA.
What documents are needed for a Demat account?
Typically a copy of your citizenship certificate (or passport), two passport-size photos, and your bank account details. Nepalis abroad may need extra documents such as a work permit.
How much does a Demat account cost?
There is a small one-time opening fee and a small annual renewal fee for both the Demat account and Mero Share. The amounts are modest and set by your DP and CDSC — confirm the current figures with your bank or broker.
Is a Demat account the same as Mero Share?
No. The Demat account (CDSC) stores your shares; Mero Share is the online portal used to apply for IPOs and manage those holdings. You generally set up both together.