NEPSE Explained: Nepal's Stock Market for Beginners
NEPSE is where Nepal's public companies are bought and sold. Here is what the index means, how trading works, and how a beginner can start investing.
What is NEPSE?
The Nepal Stock Exchange (NEPSE) is the country's only stock exchange, based in Kathmandu. It is where shares of listed public companies — banks, hydropower, insurance, microfinance, manufacturing and more — are traded between investors. When you buy a share after an IPO, you are trading on NEPSE's secondary market.
The NEPSE index — what the number means
The NEPSE index is a single number that tracks the overall movement of all listed shares, weighted by market capitalisation. When you hear "NEPSE went up 15 points today," it means the market as a whole rose. There are also sub-indices for sectors (banking, hydropower, microfinance, etc.) and a float index that counts only freely tradable shares. The index is a barometer of sentiment, not the price of any single share.
Primary vs secondary market
There are two ways to buy shares:
- Primary market — buying directly from the company at issue, i.e. IPOs and FPOs, through Mero Share at a fixed price.
- Secondary market — buying and selling already-listed shares from other investors on NEPSE, at live market prices, through a licensed broker.
Brokers and the TMS
To trade on the secondary market you need a licensed stockbroker and access to the TMS (Trade Management System), the online platform where you place buy and sell orders. You open a trading account with a broker, link it to your Demat account and bank, and place orders during market hours. Brokers charge a commission on each trade.
Trading hours and circuit limits
NEPSE trades on Sunday to Thursday (Nepal's working week), closed on Friday, Saturday and public holidays, during set daytime hours. To curb extreme swings, NEPSE applies circuit breakers — daily limits on how far the index or an individual share can move — which can pause trading. Always check current hours and rules on the official NEPSE site, as they are periodically revised.
How a beginner can start
- Open a Demat account and a Mero Share account.
- Start with the primary market — apply for IPOs, which are low-cost and beginner-friendly.
- To trade listed shares, open a broker/TMS account and link everything.
- Learn the basics, start small, and treat it as long-term learning rather than quick money.
This is educational information, not financial advice.
Frequently Asked Questions
What is NEPSE?
NEPSE (Nepal Stock Exchange) is Nepal's only stock exchange, based in Kathmandu, where shares of listed public companies are traded on the secondary market.
What does the NEPSE index mean?
The NEPSE index is a market-capitalisation-weighted number tracking the overall movement of all listed shares. A rise means the market broadly gained; a fall means it declined. Sector sub-indices track individual industries.
What are NEPSE trading days and hours?
NEPSE trades Sunday to Thursday, and is closed on Friday, Saturday and public holidays, during set daytime hours. Exact timings are revised periodically, so confirm on the official NEPSE website.
What is the difference between primary and secondary market?
The primary market is buying shares directly from a company at issue (IPOs/FPOs via Mero Share at a fixed price). The secondary market is buying and selling already-listed shares from other investors on NEPSE through a broker at live prices.
Do I need a broker to invest in NEPSE?
To trade listed shares on the secondary market, yes — you need a licensed stockbroker and a TMS trading account. To apply for IPOs in the primary market, you only need Demat and Mero Share accounts, no broker.
What is a circuit breaker on NEPSE?
A circuit breaker is a preset limit on how far the NEPSE index or an individual stock can move in a day. If hit, trading is paused to prevent extreme volatility.