How to do share trading from TMS?
How To Trade Share from Online 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 in the secondary market.
Many people know how to use Mero share application or Mero Share website Meroshare.cdsc.com.np for fill up IPO from Home But we can not do share trade from Mero Share so that we have to open broker account from brokers office.
Related: Download ‘Mero Share’ app to trade shares from Mobile
When share trade online Nepal started its very easy to trade share from home, earlier people had to go to the bank and apply for share. Then they 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.
According to Nepse, on average, more than 80 percent of transactions are done online only. According to Nepse, the number of TMS accounts 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 Mero 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 year. 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.
As even small investments can be used to trade shares, people seem to be investing their savings in 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 for the long term and short term.
What is TMS?
TMS is a complete form of trade management system. It is used to trade shares online.
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 of 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, you have to go to a broker’s office and get TMS service. There is no charge for this. After updating the KY (Know Your Customer) form at the broker’s office, you have to fill the form for TMS. According to the broker’s office, the TMS username and password will be sent to your email on the same day or the next day. Some brokers also do it from their online system, some of them are Naasa Securities broker No 58, Online Securities Broker No 49, Pragyan Securities Broker no 10, etc.
The broker’s office is also known by numbers like 1, 2, 3 along with their name. If you go to broker number 58 and get TMS service, you have to go to www.tms58.nepsetms.com.np and log in 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 come, there is no problem 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 pre-open session for 15 minutes from 10:30 am to 10:45 am on those days.
To sell shares from TMS, you can sell by entering the name of the company, the number 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 the TMS collator 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 money has been 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 percent fee, from Rs 50,000 to Rs 500,000, 0.37 percent, from Rs 500,000 to Rs 2 million, 0.34 percent fee, from Rs 2 million to Rs 10 million, 0.30 percent 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 a 0.015 percent commission.
First of all you have to open a broker account from broker office. Broker office will you provide a user name and password. Use that user name and password to login your TMS account and startd trade from online system of Nepse.
Before you understand stock trading, what is a stock? That had to be understood first. Shares are a fraction of a company’s capital. Every company has capital. There is no company without capital. The same capital that is divided into pieces is called shares. There are generally two types of shares.
Primary shares
Secondary share
There are different ways of doing share trade. First I had to go to the broker. Brokers are the means of trading all the shares listed on the Nepal Stock Exchange Nepse. There are 50 brokers in Nepal. Trading can be done from any one of those 50. After filling KYC with the broker, you can take your client ID and do the share trade from there.
A Demat account is like a bank account. To open such an account, such an account can be opened by going to the company which has got permission from the Securities and Exchange Board for Depository Participant (DP) service.
Currently, securities brokers, banks and financial institutions, merchant bankers, transfer representatives and other organizations have been operating Demat services with the permission of the board. You have to go to a company or Bank that suits you and open a ‘Demat’ account. This requires a photocopy of citizenship and two passport size photos.
The company’s capital or ownership is divided into several units and sold to investors. Thus the document of the divided unit of capital of the company is called share. Shares are issued to raise capital for the company. A share is an invisible unit of capital in which a contract is entered into between a company and a shareholder.
By investing in shares, shareholders receive a dividend each year based on the company’s financial performance or profits. There is a profit or loss from the business of any company. The share of the investment that is allowed to be a share of both the loss or profit in proportion to the investment made.
The Nepal Stock Exchange is the only secondary market in Nepal. In the secondary market, buying and selling of shares takes place between investors with the mediation of a broker, so there should be no relationship with the company in buying and selling shares. Legally, since it is not possible for two investors to buy and sell shares by mutual agreement, when buying and selling shares, they should go to the broker companies licensed by the Securities and Exchange Board and complete the appropriate process and order the purchase and sale. The broker charges a commission as per the law for buying and selling shares in this way. Bank account, demat account and transaction account are mandatory for buying and selling securities in the secondary market. If you do not have a bank or demat account in your name, you should open an account with a suitable bank. Since most of the banks also provide DP service, demat account can be opened in the same bank or broker or other DP service provider.
The bank where you have your account should be a bank registered in C-ASBA, most of the banks are listed in C-ASBA.
Now you have to open a Demat account after opening a bank account. A Demat account is an account that holds your shares. You can open a Demat account with banks and financial institutions or you can also open a stock trading broker. You can also log in to Mero share (Meroshare) from the place where you opened the demat account. If you take my share, you can apply for IPO from home, otherwise you have to go to the branch where you have your bank account every time and apply for IPO by filling the form. The password for my share (Meroshare) arrives in your email.
Now after opening a Demat account, you have to go to the place where your bank account is and get the CRN number. This number is enough to take once. After getting a CRN number, now you have two ways to fill out an IPO. The first is to sit at home and fill out an IPO from Meroshare. The other is to go to the same bank where you got the CRN number, fill out a form and apply for an IPO. It is very easy to apply for IPO from my share.
Even if you apply for IPO from my share or apply for IPO by filling the form in the bank, the amount equal to the number of shares you have applied is frozen in your bank account. If you receive shares, the amount equal to the number of shares received will be deducted from your bank account and the same number of shares will be transferred to your demat account. The unpaid amount is now open in your bank account and you can use that amount.
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