The secondary market is buy and sell the security in buyer and seller with Brokers. Nepal Stock Exchange, in short NEPSE, is established under the Companies Act- 2006, operating under Securities Act- 2007. The basic objective of NEPSE is to impart free marketability and liquidity to the government and corporate securities by facilitating transactions in its trading floor through member, market intermediaries, such as broker, market makers etc. NEPSE opened its trading floor on13th January 1994.
Secondary market refers to a financial market where previously issued (from Initial public offering) securities are bought and sold among investors, rather than directly from the issuing company or entity. It is also known as the aftermarket or the stock market. In the context of investments, the secondary market contrasts with the primary market, where securities are initially issued and sold to investors.
Key features of the secondary market include:
Trading of Existing Securities:
In the secondary market, investors buy and sell existing financial instruments, such as stocks, bonds, and derivatives, among themselves. The transactions do not involve the issuing company or the original issuer.
Liquidity:
The secondary market provides liquidity to investors by offering a platform to buy or sell securities quickly. This liquidity is essential for investors who may need to convert their investments into cash.
Exchanges and Over-the-Counter (OTC) Markets
Secondary market trading can occur on organized exchanges (e.g., the New York Stock Exchange or NASDAQ) or over-the-counter (OTC) platforms, where trading is decentralized.
Price Determination:
Prices in the secondary market are determined by supply and demand dynamics. Factors such as market sentiment, company performance, economic conditions, and geopolitical events can influence prices.
Investor Profits and Losses:
Unlike the primary market, where funds go to the issuing company, profits and losses in the secondary market go to the investors buying and selling the securities.
Regulation: Secondary markets are typically subject to regulatory oversight to ensure fair and transparent trading practices. Regulatory bodies may establish rules to prevent market manipulation and protect investors.
Examples of securities traded in the secondary market include:
Stocks: Shares of publicly listed companies.
Bonds: Debt securities issued by governments, municipalities, or corporations.
Debentures: Debentures are issued by multinational companies, corporations who promised prepaid interest rate for buyers.
Derivatives Securities: Financial instruments whose value is derived from an underlying asset, such as options and futures.
The current market share of Electric Distribution Companies (DISCOMs) in Nepal. The energy sector and market shares can change over time due to various factors, including government policies, infrastructure development, and market dynamics.
To obtain the most accurate and up-to-date information on the market share of electricity distribution companies in Nepal, I recommend checking with relevant local authorities, regulatory bodies, or the companies themselves. Additionally, financial reports, industry publications, or news sources may provide insights into the current status of the electricity distribution market in Nepal.
EDIS stands for Electronic Delivery Instruction Slip. It is a facility that allows you to transfer your shares from your Mero Share account to the buyer’s account after you sell them in the stock market.
You need to do Electronic Delivery Instruction Slip within T+2 days(T+2 Stands for buy and sell settlement in two days in nepal) of selling your shares. EDIS is done through the Mero Share application, which is managed by CDS and Clearing Limited.
Watch Video for EDIS
To do EDIS, you need to log in to your Mero Share account and follow these steps:
- Click on the My Purchase Source menu
- Select the Purchase Source
Select the My Holding Menu
After You need to do this to calculate the WACC (Weighted Average Cost of Capital) and set up the stock holding days.If you have hold lessthan one year you can pay 7.5 % Capital Gain Tax and you can hold more than one year you can pay 5% capital gain tax in Nepal for CGT (Capital Gain Tax) calculation.
Then You can Click on the My EDIS
- select the Transfer Shares.
- You will see the details of your share transactions that need EDIS.
- Tick on the boxes of each share transaction and click on
