What is a TMS and How to trade shares from TMS ?

Jun Wed 2021 10:18:59

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What is a TMS and How to trade shares from TMS ?

Now share trading is also possible online. Which we call TMS. According to Nepse, on an average, more than 80 percent of transactions are done online only.

TMS is a complete form of trade management system. It is used to trade shares online. Traditionally, shares were traded only after going to the broker's office and ordering the purchase or sale of shares orally or in writing. But after the arrival of TMS, the investors who have availed this service are not obliged to visit the broker's office. Investors can trade shares by logging in to computers, laptops, mobiles and other devices from home, office or from where they live.

For this, first of all you have to go to a broker's office and get TMS service. There is no charge for this. After updating the KY (Know Your Customer) form at the broker's office, you have to fill the form for TMS. According to the broker's office, TMS username and password will be sent to your email on the same day or the next day

The broker's office is also known by numbers like 1, 2, 3 along with their name. If you go to broker number 1 and get TMS service, you have to go to www.tms01.nepsetms.com.np and login using the username and password provided by the broker's office. The broker's office number is mentioned when logging in to TMS in the browser.

Thus, once the username and password come, there is no problem to sell the shares you have. You can trade from 11 a.m. to 3 p.m., Sunday through Thursday, except on holidays. Apart from that, you can also trade in the pre-open session for 15 minutes from 10:30 am to 10:45 am on those days.

To sell shares from TMS, you can sell by entering the name of the company, the amount of shares you want to sell and the price after clicking on the order and going to the sale option. In this way, it can be seen immediately whether the sale has taken place or not. In this way, the share price can be kept at a maximum and minimum of 2 percent above the current price.

Similarly, when buying shares of a company from TMS, you can go to the buy order and put the name of the company, the amount you want to buy and the price. But for this you have to pledge 25 percent of the total amount you are going to buy in TMS.

You can keep TMS collator through IPS Connect through broker office. The amount seen in the collateral can be considered as 25 percent. For example, if you have Rs 25,000 in your collateral, you can buy shares up to Rs 1 lakh. As soon as you buy the order and the shares, it is seen how much was spent as collateral. If you buy the shares, the collateral will be returned to the old condition after the payment is made through the broker's office or Connect IPS.

There is a provision that the shares purchased in this way should be credited to your account within 3 days, while the money after selling the shares can be credited to your bank account within 3 days.

How much does it cost to trade shares?

Share trading is buying or selling. If you have traded up to Rs 50,000, you have to pay 0.4 per cent fee, 0.37 per cent fee from Rs 50,000 to Rs 500,000, 0.34 per cent fee from Rs 5 million to Rs 2 million, 0.30 per cent fee from Rs 2 million to Rs 10 million. There is a 0.27 percent fee for transactions above Rs.

Only 5 percent tax is levied on the money earned from the sale of shares, while the DP fee is Rs 25 per transaction. Apart from that, the Securities and Exchange Board also charges 0.015 percent commission.