The journey of the stock market in Nepal began in 1994 BS. At that time, Biratnagar Jute Mills and Nepal Bank Limited issued shares to the general public for the first time. The name of Nepal Bank Limited in particular still remains special. It became the first company to be listed on the Nepal Stock Exchange (NEPSE).

Although the first government bonds were introduced after the Companies Act was promulgated in 2021, there was no systematic trading system. The market's momentum remained limited due to the lack of any clear mechanism or regulatory body for buying and selling securities. In 2033, securities trading was formalized by establishing the Securities Exchange Center. Seven years later, in 2040 BS, this center was transformed into the present Nepal Stock Exchange (NEPSE).

To make securities trading systematic, the 'Securities Trading Act' was promulgated in 2040. The Securities and Exchange Board of Nepal was established on 25 Jestha 2050 by the Government of Nepal as a securities market regulatory body to regulate and supervise the securities market by amending the Securities Transactions Act 2040, stating that the act had not led to the expected development in the capital market.

Similarly, in 2063, with the aim of improving the capital market and making securities transactions in the secondary market more convenient, the government enacted the ‘Securities Act 2063’. Along with that, the ‘Securities Market Operation Regulations 2064’ were also enacted to organize the capital market. Currently, Nepal’s capital market and securities transactions are guided by this Act and Regulations.

Number of Demat and Mero Share Accounts

Recently, the attraction of investors towards the stock market in Nepal has been increasing rapidly, according to data from CDS and Clearing (CDSC). Although the market has not gained the momentum expected by investors, the number of Demat and Mero Share account openings is increasing daily. According to CDSC, the number of Demat account openings has reached about 70 lakh 19 thousand by Bhadra 2082 BS. This number was only 58 lakh 23 thousand by the end of the fiscal year 2079/80.

Similarly, the number of Mero Share users has also increased significantly. By Bhadra 2081/82, Mero Share users have reached about 60 lakh 91 thousand. At the end of the fiscal year 2079/80, this number was only 47 lakh 41 thousand 55. By the end of the fiscal year 2080/81, the number of users had increased to 53 lakh 22 thousand 969.

Number of listed companies

Currently, there are more than 270 small and large companies listed on NEPSE. In which there are companies divided into 13 sectors. For example, companies in sectors such as hydropower, microfinance, banking groups, insurance, microfinance, hotel and tourism are listed on NEPSE.

Similarly, sectors such as trading index, manufacturing and processing-oriented companies, other sectors, and mutual funds are listed on NEPSE. In addition, more than 300 companies are currently trading shares on NEPSE daily.