Investing in Nepal’s stock market (NEPSE) is a great way for Nepalis working abroad to build wealth back home. The Securities Board of Nepal (SEBON) has made this easier by reserving 10% of all public IPO shares specifically for Nepalis who have received labor approval for foreign employment. This guide provides a clear, step-by-step process to apply for these reserved shares.
What is the Foreign Employment IPO Quota?
To encourage investment from remittance income, SEBON mandated that 10% of shares offered in an Initial Public Offering (IPO) be set aside for Nepalis working overseas. This quota gives you a significantly higher chance of allotment compared to the general public category, where applications are often oversubscribed hundreds of times.
Eligibility and Required Documents
Before you start, ensure you meet the criteria and have the necessary documents.
Who is Eligible?
- Nepali citizens who have obtained labor approval from the Government of Nepal’s relevant bodies.
- Must be working abroad (outside of India) at the time of application.
Required Documents:
- A copy of your passport and valid visa.
- Proof of labor approval (श्रम स्वीकृति).
- A document proving you are sending money to Nepal through official banking channels (e.g., remittance transaction slip).
- Passport-sized photograph and a copy of your citizenship.
Step-by-Step Guide to Apply for the IPO
Follow these steps carefully. You must complete the first four steps before any IPO is announced.
Step 1: Open a Remittance Bank Account
You must have a specific “Remittance” savings account in a Nepali commercial bank. You cannot use a standard savings account. This account is designed to receive funds sent from abroad. Contact any ‘A’ class commercial bank in Nepal to open one online or through their representatives.
Step 2: Open a Remittance DEMAT Account
Your DEMAT account, which holds your shares electronically, must be linked to your remittance bank account. When opening a DEMAT account with a Capital or Broker, you must specify that you need a “Remittance DEMAT Account” for the foreign employment category. If you already have a general DEMAT account, you will need to open a new one for this purpose.
Step 3: Get Your Mero Share Credentials
Mero Share is the online portal where you apply for IPOs. When you open your Remittance DEMAT account, your Capital will provide you with a username and password for Mero Share. Make sure to log in and change your password immediately.
Step 4: Get Your CRN Number
The C-ASBA Registration Number (CRN) is a unique number provided by your bank. It connects your remittance bank account to your Mero Share account, allowing you to pay for share applications. You can apply for this number through your bank’s online portal or by filling out a form.
Step 5: Apply for the IPO via Mero Share
Once an IPO is open and you have completed the steps above, the application process is simple:
- Log in to your Mero Share account.
- Go to the “My ASBA” tab.
- Under “Apply for Issue,” find the company offering shares.
- Click the “Apply” button next to the company name.
- Crucially, select “Foreign Employment” from the “Reservation” or “Category” dropdown menu. This is the most important step.
- Enter the number of shares (Kitta) you want to apply for.
- Enter your CRN number.
- Enter your 4-digit Mero Share transaction PIN.
- Accept the terms and conditions, then click “Proceed.”
Your application is now complete. The application amount will be blocked in your bank account until the IPO allotment is finalized.
Frequently Asked Questions (FAQ)
Can my family in Nepal apply on my behalf from their account?
No. The remittance bank account, DEMAT account, and Mero Share profile must all be in the name of the person with the foreign labor approval.
What if my labor permit has expired?
SEBON’s regulations generally require an active labor permit. It’s best to confirm with your Depository Participant (Capital) about the latest rules regarding permit validity.
Do I get a guaranteed allotment?
While the allotment chance is very high, it is not guaranteed. If the 10% quota is also oversubscribed, the allotment will be done through a lottery system among the applicants in that category.
Conclusion
The foreign employment quota is an excellent government initiative for Nepalis abroad. By following these steps, you can use your hard-earned money to invest in promising Nepali companies and participate in the nation’s economic growth. Start the account opening process today so you are ready for the next big IPO.