How to Sell Your Shares in NEPSE (Demat account, TMS, or Meroshare?)

You made your Demat account and Meroshare account to apply for IPOs online. Now, do you want to sell your shares online in NEPSE? Maybe you have heard that you’ll have to sell your shares in the secondary market. What does it mean? Also, do you sell shares in Nepal from your Meroshare account or Demat account? What is the TMS for? What does TMS even mean?

Slow down, grasshopper. All these will be clear to you in a minute.

1) You can’t sell your shares from your Demat account or your Meroshare account.

You cannot sell your shares from your Demat account or your Meroshare account. The Demat account is just like a bank account to store your shares. Meanwhile, the Meroshare account is only to apply for IPOs and settle your transaction (explained later).

For a beginner, all this is confusing. Just know that you can’t sell your shares from your Demat account or your Meroshare account.

2) You will have to sell your shares in the secondary market.

If you have been applying only for IPO issues as of now, you have only dabbled in the primary market. In a sense, the secondary market is the real stock market. That is where people buy and sell shares, and that is where the real money is made (and lost).

You opened a Meroshare account and Demat account to invest in the primary market. In order to sell the IPO shares, you will now have to make a trading account at a stockbroker’s office. There are 50 licensed stockbrokers in Nepal. You will have to choose one of them to be your stockbroker. As a hint, just choose one that is close to your home or office. Although trading can be done online in NEPSE now, it is always better to choose one that is physically accessible just in case.

The trading account is also called a broker account by some investors. Do not get too lost in these terms.

Step 1: Log into your trading platform

Every stockbroker has a unique link that you can use to access the online trading portal. After you enter the URL of your broker, you are prompted to the login page. After filling in your login credentials, you will be taken to NEPSE’s online trading platform. Your stockbroker will give you your login credentials via email after you send them an account opening application.

The data displayed inside the portal are the same for all investors and updated at the same time regardless of which URL they used to log in.

Like I already said, there are a total of 50 licensed broker companies for trading facilitation in the Nepal Stock Exchange. Logically, it makes sense to give each broker company a serial number from 1 to 50. However, for some reason, the list is not serial in some cases. There are gaps in the numbering. For example, the second broker company on the list is Arun Securities, which is actually labeled Broker No. 3.

This is why finding the website URL of broker companies is sometimes hard. This might make it simple:

Each broker has a URL that investors can use to log into the Trade Management System (TMS), NEPSE’s online trading platform. The URL looks something like this:

https://tms##.nepsetms.com.np

All you need to do is replace the “##” with the broker number of your broker company from where you made your trading account. Remember, the broker number is different from its serial number for some companies.

For instance, for investors who made their trading account at Kumari Securities (Broker 01), the trading URL is:

https://tms01.nepsetms.com.np

I have included the login url of all stockbroker companies in this article.

Step 2: Study the supply and demand before selling

After you log into the online trading platform, the home page looks like this:

The market opens at 11 am in the morning and closes at 3 pm in the afternoon. You can buy or sell shares during this time. Note that shares can be bought or sold only when the stock market is open. NEPSE remains closed on Fridays, Saturdays, and government-declared national holidays.

After you log into the portal during market hours, some like to directly access the selling dashboard. You can do this by clicking on the “Order Management” menu on the left. A dropdown menu appears and you should click on the menu titled “Buy/ Sell.” Not very difficult, is it?

However, I choose to observe the market depth of the stock that I want to sell. There is another page in NEPSE that has more information than the buying and selling dashboard. That is the Market depth page. You can access the market depth page by clicking on the “Market Data” menu. Then a dropdown appears and you should click on “Market depth.”

Are you with me? You’re not lost in between these figures, right? Go slow if you like.

The market depth has more information about the price movement of the stock. This is a screenshot of the complete information that you can get from this page:

Market depth page gives you more information

You can see the last traded price (LTP), Last Traded Quantity (LTQ), Last Traded Time (LTT) which are very helpful as you mature in your investment journey. You can also see the buy and sell orders. Look at the figure above. There are two tables. One contains the number of buyers along with the number of shares they want to buy and the price at which they want to buy it. The next table contains the number of sellers along with the number of shares they want to sell and the price at which they want to sell it.

Now, logically, buyers want to buy cheap and sellers want to sell at an expensive price. This is why buy orders are at a low price and sell orders are at a higher price. If the price matches between a buyer and a seller, a transaction is made.

If you click on the sell button above, you will go to the buying and selling dashboard without having to click on the dropdown menus as we did before. This is why I recommend you always go through the market depth page once. You will get more information that way.

Step 3: Place your sell order

You will now enter the buying and selling dashboard. Since we entered this page by clicking on the red Sell button in the market depth page, the dashboard is already ready to take our sell order.

If you enter by clicking on the dropdown menu, you will have to turn the switch to sell.

On this page, you enter the number of shares you want to sell in the “QTY” field. You then enter the price per share in the PRICE field. As a beginner, leave the VALIDITY and VALID TILL field just as they are. Also, as a beginner, you can put the LTP as your selling price. (The LTP is the last traded price or the price at which the last transaction was made.)

Now, click on the sell button. Your order will appear in the Order Book seen in the screenshot above. Keep refreshing the page to see if your order is executed. If the order disappears from the Order Book, it is most likely executed already.

You can also check your order status by clicking on “Order Management” and then “Daily Order Book.”

If the order is still not executed, it will be in the “Open” section. Once executed, it will go to the “Completed” section. Everything is logical, right? Are you with me? Sometimes, your order may be executed in multiple phases if you are selling a large number of shares.

If it shows in the completed section, our work in the TMS is done. You have now successfully sold your shares online. Congratulations.

Step 4: Settlement of the shares

You are not done yet. After you sell your shares, you will have to transfer the shares from your Demat account to the pool of your stockbroker’s account. This ensures that your broker can send your shares to the person who bought them. I already introduced this term at the start of this article. The process is called share settlement.

You should settle your transaction from Meroshare. Log into your Meroshare account.

You will then be prompted to the dashboard. Click on “My Purchase Source.”

Search for the scrip (stock ticker) that you sold. All you have to do is select the scrip and click on proceed. After this process is over, click on “My EDIS.”

You should have your sold scrip in the “Transfer Shares” section. If the scrip is not seen in this section, you should wait till today evening or come back to complete this process tomorrow. Note that you should complete the EDIS process within the next day after selling your shares.

Proceed and click on the required buttons. Unless you sell a different quantity from your entire number of shares, this process is mundane and plain simple.

Update: NEPSE now requires you to calculate the holding period. This is done to determine whether you are a trader or an investor. NEPSE now deducts 7.5% capital gains tax for traders who sell within 365 days of buying. For investors who hold longer than 365 days, they will be taxed 5% on the profit while they sell.

To calculate the holding period in Meroshare, simply go to “My Purchase Source” and click on “My Holdings.” There is an automated system here to calculate your holding period. Follow the obvious steps and proceed.

After proceeding, you should have your shares in the “Transfer Request Report” section with the status “Pending.” You are now done. The selling process is now complete.

Step 5: How to get your payment

Settlement of the shares takes two to three days. However, I have noticed that it generally takes four days or more to receive your payment.

My stockbroker sends me a payment only after I give them a call. Well, most stockbroker companies in NEPSE suck. Investors frequently complain about their terrible customer service and efficiency. You might also have to call after a few days and request payment.

Nonetheless, I have heard that some broker companies have a page to request payment on their website.