On the Occasion of World Investor Week, SEBON and NEPSE Provide Advice & Message to Investors While Investing in the Stock Market

World Investor Week (WIW) 2022 is a global campaign being celebrated under the aegis of International Organization of Securities Commissions (IOSCO) and Securities and Exchange Board of India (SEBI), from October 10 to 16, 2022, to raise awareness about the importance of investor education and protection. One initiative under the WIW 2022 is the “Ring the Bell Ceremony for Financial Literacy”. As a result, SEBON, Nepal's securities market regulator, and NEPSE, the country's sole stock exchange, have underlined their advice and message to investors that can be helpful in the long run.

Highlighting Securities Board’s (SEBON) message for stock market investors on the occasion of World Investor Week-2022.

1. Since there may be fluctuations in the securities market from time to time, when investing in securities, take real and appropriate information and take a prompt and prudent investment decision.
2. Since there are both returns and risks involved in investing in securities, without being misled by rumors, unnecessary publicity, or being misled by anyone, take information including the market and the company's financial statements, and choose the investment instrument according to your own discretion and risk-bearing ability.
3. New entrants to the stock market should start investing from the primary market. While investing in the primary market, study the prospectus of the company issuing the securities and analyze the important aspects such as the company's founder and management, financial status, and credit rating level.
4. When investing in the secondary market of securities, the official or certified performance status of the listed company, sensitive information that may affect the price of securities, such as dividend announcements, the declaration of rights shares, changes in management, future plans, financial indices mentioned in the company's periodic and annual reports, price trends of securities, important aspects such as the decision (minutes) of the general meeting of the listed company, are all important factors to consider.
5. As the overall economic and political situation of the country has a direct impact on the securities market, be aware of this while investing in securities.
6. Inflation, bank liquidity, and interest rates have a direct impact on the securities market, so consider these issues while investing and take investment decisions.
7. Pay attention to investment diversification to minimize the risk of investing in securities. Stay informed about the benefits of long-term, regular and diversified investments.
8. When investing in the securities market, determine the required or expected rate of return (Required rate of return).
9. When dealing in the secondary market of securities, be informed that the transaction must be cleared (T+2) within two (2) days of the day of the transaction. If it is not clear during that period, if the board is informed, the board will immediately proceed with the activation process.
10. Estimates and projections published and broadcast through social media (such as Facebook, Club House, YouTube, and TikTok, etc.) regarding the securities market are not official, so do not make investment decisions based on those estimates, projections, ideas, and consultations. Be aware of business decision based on new technologies.
11. When doing securities transactions, do the transaction through the bank. Get the necessary information about the legal provisions related to the fees charged by securities brokers for securities transactions.
12. Make an investment decision only after getting information about the type of shares you are going to invest in (such as promoter shares, ordinary shares, preference shares) and its characteristics, advantages or disadvantages.
13. Save information on the arrangement that allows public limited businesses' securities to be traded in the over-the-counter market after they have been delisted from the Nepal Stock Exchange and are not listed.
14. When doing investment in the secondary market of securities, do business only through a stock broker who has obtained a license from the board and is a member of NEPSE.
15. Visit the website of the Board, NEPSE, Nepal Rastra Bank, Ministry of Finance, and Insurance Committee for official announcements related to the securities market, finance market, insurance market, and related policies, rules, and instructions.
16. If you have any questions or complaints regarding investment in securities, contact the relevant securities dealers, issuers, and listed companies, CDSC, NEPSE, or the Board.
17. As the board has been conducting regular training and informational programs and publications related to the securities market and the commodity exchange market, actively participate in such programs and acquire the necessary knowledge related to the market and investment.

Highlighting Nepal Stock Exchange’s (NEPSE) message for stock market investors on the occasion of World Investor Week-2022.

1. Username and password for using Nepse Online Trading System (NOTS) can be obtained from NEPSE member stock brokers and their branches outside the valley. The names, addresses, and phone numbers of stock brokers are available on the NEPSE - websites www.nepalstock.com and www.nepalstock.com.np. The Username and password are available for free.
2. Trade Management System (TMS) is a means of connecting investors to the system of brokers and Nepse through which investors can enter purchase and sale orders. Information about every status of the entered order can be obtained by going to the Order Book.
3. Online users can transact through brokers or by themselves by entering purchase and sale orders. When opening an account with any broker, the investor should inform whether it is offline or online.
4. In order to transact, the customers must deposit collateral with their broker. Brokers provide trading limits to investors based on deposits. The broker minimizes the risk of trading by trading limits according to the needs of every investor.
5. Investors can transfer funds/collateral to the broker's account by going to the clearing bank's e-Banking Portal from TMS for transaction limits and post-purchase of securities. This facility can also be taken from banks and financial institutions affiliated with Nepal Clearing House Limited.
6. After selling the securities, you have to go to www.meroshare.cdsc.com.np, log in, open MY EDIS, and transfer shares. In this way, it is possible to clear the securities only after transfer share.