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How to trade shares from TMS in Nepal? How much is the service charge?

How to trade shares from TMS in Nepal

Recently, the number of investors trading in the stock market has been increasing day by day. Investors seem to be attracted to the fact that shares can be traded online. When the trading of shares started in Nepal, it was necessary to go to the bank and apply for the purchase of shares. Then you had to go to the broker's office and shout for orders.

Over time, share trading has also become possible online, which we call TMS (Trading Management System). According to Nepse, on an average, more than 80 percent of transactions are done online only. According to Nepse, the number of TMS recipients has reached around 350,000. According to statistics, more than 2.88 million people have opened demat accounts so far. Similarly, the number of people who have opened my shares is more than 1.5 million.

Looking at the statistics, the number of demat and Mero share openings has more than doubled in the last one year alone. Due to the IPO of Nepal Reinsurance Company and the recently launched Nepal Infrastructure Bank at the beginning of the Corona epidemic, the number of demat and Mero shareholders has increased significantly.

It is seen that people have started investing their savings in shares as even small investments can be used to trade shares. Rs. 1-2 lakhs is not enough to start any other business. But to invest in shares, you can start with only Rs 20,000 or less.

What is TMS?


TMS is a complete form of trade management system. It is used to trade shares online in Nepal. Traditionally, shares were traded only after going to the broker's office and ordering the purchase or sale of shares orally or in writing. But after the arrival of TMS, the investors who have availed this service are not obliged to go to the broker's office.

Investors can trade shares by logging in to computers, laptops, mobiles and other devices from home, office or from where they live. For this, first of all you have to go to a broker's office and get TMS service. There is no charge for this. After updating the KYC (Know Your Customer) form at the broker's office, you have to fill the form for TMS. According to the broker's office, TMS username and password will be sent to your email on the same day or the next day.

The broker's office is also known by numbers like 1, 2, 3 along with their name. If you go to broker number 1 and get TMS service, you have to browse through www.tms01.nepsetms.com.np and login using the username and password provided by the broker's office. The broker's office number is mentioned when logging in to TMS in the browser.

Thus, once the username and password arrives, there is no any issue to sell the shares you have. You can trade from 11 a.m. to 3 p.m., Sunday through Thursday, except on holidays. Apart from that, you can also trade in the 15 minutes from 10:30 am to 10:45 am in the pre-open session on those days. To sell shares from TMS, you can sell by entering the name of the company, the amount of shares you want to sell and the price after clicking on the order and going to the sale option. In this way, it can be seen immediately whether there is a sale or not.

In this way, the share price can be kept at a maximum and minimum of 2 percent above the current price. Similarly, when buying shares of a company from TMS, you can go to the buy order and put the name of the company, the amount you want to buy and the price. But for this you have to pledge 25 percent of the total amount you are going to buy in TMS. You can keep TMS collateral through IPS Connect through broker office.

The amount seen in the collateral can be considered as 25 percent. For example, if you have Rs 25,000 in your collateral, you can buy shares up to Rs 1 lakh. As soon as you buy the order and the shares, it is seen how much was spent as collateral.

If you buy the shares, the collateral will be returned to the old condition after the payment is made through the broker's office or Connect IPS. There is a provision that the shares purchased in this way should be credited to your account within 3 days, while the money after selling the shares can be credited to your bank account within 3 days.

How much does it cost to trade shares?


Share trading is buying or selling. How much does it cost to buy or sell a share? That is, if you have traded up to Rs 50,000, you have to pay 0.4 per cent fee, from Rs 50,000 to Rs 500,000, 0.37 per cent, Rs 500,000 to Rs 2 million, 0.34 per cent fee, from Rs 2 million to Rs 10 million, 0.30 per cent fee. A fee of 0.27 percent is charged for transactions above Rs 10 million. Only 5 percent tax is levied on the money earned from the sale of shares, while the DP fee is Rs 25 per transaction. Apart from that, the Securities and Exchange Board also charges 0.015 percent commission.

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