How to Open a Demat account?

Saturday, Feb 2022

Kathmandu, February

Before opening a demat account, I would like to explain to you what a demat account is.

Demat is a shortened form of the English word ‘dematerialized’. In Nepali it means intangible account.

When buying and selling shares of various companies, they used to be transferred in the form of physical certificates. That is, the seller of the shares would give the certificate, the buyer would get the certificate in his own name again.

The demat account has been fully operational since January 16, 2016. At present, shares are transferred in dematerialized form directly to the demat account. Just like we deposit money in a bank account, the shares bought in a demat account are deposited automatically.

After the initial share (IPO) is paid, it is credited to the account. Similarly, when selling shares in the secondary market, the number of shares decreases from the account and is credited to the demat account of the buyer. The demat account is the account where the shares are deposited.

How, where to open an account?

This account can be opened in various bank subsidiaries. Banks with subsidiaries open such accounts.

Similarly, such accounts can be opened through broker companies. The institution that opens this account is called the Depository Participant.

There are 76 such depository members. To open such an account, bank account number, photocopy of citizenship certificate and photo are required. Such an account can be opened in the bank or broker company where you do business.

Many do not charge a fee for opening such an account. Some will be able to charge up to one hundred rupees. After opening a demat account, you get a 16-digit demat account number.

Only after getting that number can you fill the primary share or buy and sell from the secondary market (Nepse).

Which companies have how many shares in their demat account? Details such as its current market value, whether or not shares have been credited to the account can also be viewed from one’s mobile or laptop. For this, the demat account opening company provides the username and password of the demat account login.


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I am keshab acharya from khotang diktel. Studied at Tri-Chandra multiple campus(BSc physics)

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