KATHMANDU, Oct 26: The number of dematerialized (demat) accounts in Nepal has reached 8.098 million as more people turn to the stock market amid economic uncertainty, rising costs and risks in other sectors.
Political instability, floods and landslides have disrupted transport and supply chains, while rising prices have increased the cost of importing raw materials and fuel.
Difficulties in commercial farming, livestock trading and hydropower construction have also added to investment risks. With the business environment remaining challenging, investors appear to be increasingly attracted to the stock market as an alternative.
CDS and Clearing Limited (CDSC), Nepal’s central securities depository and settlement service provider, reported that 8,098,000 demat accounts had been opened. A demat account is mandatory for holding and trading shares electronically.
The number of users registered with Mero Share, the online platform used to apply for initial public offerings (IPOs) and transfer shares, has also grown. According to CDSC, 7,188,998 people have registered for the service, of whom 5,123,000 are active users.
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Investors use Mero Share to apply for IPOs and transfer shares sold in the secondary market. Those without the service must visit banks to submit IPO applications. A demat account is required to apply for shares and trade them on the secondary market.
CDSC was established in 2010 under the ownership of Nepal Stock Exchange (NEPSE). Most shares listed on the country's securities market have now been dematerialised.
According to NEPSE, 348 companies are listed on the stock market, with total investment valued at Rs 4.534 trillion.
Women account for 42.67 percent of all demat account holders, indicating a substantial share of female participation in the market. Securities Board of Nepal Chairman Gopal Prasad Bhatt presented the same figure at a meeting of the Federal Parliament’s Finance Committee on the capital market in September.
Shares dominate capital mobilisation
Ordinary shares account for 46.26 percent of the total capital raised by corporate entities, according to the Securities Board. Institutional debentures make up 31.03 percent, mutual funds 14.81 percent, specialised investment funds 5.17 percent and preference shares 2.17 percent.
The board has approved 20 specialised investment funds to mobilise Rs 48.25 billion. The government collected Rs 15.61 billion in revenue from the stock market alone in fiscal year 2025/26.
Young adults form the largest age group among demat account holders. Those aged 19 to 30 account for 30.12 percent, followed by people aged 41 to 60 at 25.87 percent and those aged 31 to 40 at 23.24 percent.
Investors aged up to 18 make up 12.31 percent, while those aged 61 to 70 account for 5.38 percent. People aged over 70 represent 3.04 percent.
Bagmati leads in demat accounts
Bagmati Province accounts for the largest share of demat accounts at 33.85 percent, while Karnali has the smallest at 3.04 percent.
Koshi accounts for 18.94 percent, Madhesh 12.81 percent, Gandaki 12.34 percent, Lumbini 12.20 percent and Sudurpashchim 6.74 percent.