What is a demat account — and how to open one
A demat account is the first requirement for buying shares in Nepal. What it is, why you need it, how to open one, and how it connects to Meroshare — in plain language.
What is a demat account?
A demat account holds your shares electronically — a bank account is for money, a demat account is for shares. In Nepal the holdings are kept at the CDSC depository, and you open the account through a DP (Depository Participant): a bank or a broker. When you buy shares they are credited here; when you sell, they are debited.
How to open a demat account — step by step
- 1
Choose a DP
Pick a bank or broker that offers demat services — a Depository Participant (DP). Most commercial banks and licensed brokers do; many now open accounts online.
- 2
Submit the form and documents
Fill in the application and provide your citizenship certificate or ID, a passport-size photo, and your bank account details. Minors need a guardian's documents too.
- 3
Pay the fee
DPs charge a small opening and annual maintenance fee (typically a few hundred rupees). Processing starts once it's paid.
- 4
Receive your BOID and Meroshare login
When the account is open you get a 16-digit BOID — your demat account number — and Meroshare credentials to apply for IPOs and view your holdings online.
Documents you'll need
- Citizenship certificate (or passport / national ID for non-citizens where allowed)
- Passport-size photograph
- Bank account details (the account you'll link for ASBA and dividends)
- For minors: the guardian's citizenship and photo, plus the birth certificate
Frequently asked questions
What is a demat account?
A demat (dematerialised) account holds your shares in electronic form — the way a bank account holds money. In Nepal, holdings sit with the CDSC depository and you open the account through a DP (a bank or broker).
Why do I need one?
Without a demat account you cannot buy or sell listed shares or apply for an IPO in Nepal. It is mandatory for both.
Is Meroshare the same as a demat account?
No. The demat account stores your shares; Meroshare is the online portal (run by CDSC) where you manage that account, apply for IPOs and check results. Your DP gives you both.
What is a BOID?
Your Beneficial Owner Identification number — the 16-digit number of your demat account. You use it when applying for IPOs and checking allotment results.
How long does it take to open?
Usually a few working days once the documents are in. Some DPs open accounts the same day online.
Do I need a demat account to practise trading?
No. StockYatra's simulator needs no demat, broker or KYC — you practise real NEPSE names with virtual coins, then open a demat account when you're ready to invest for real.