Nepal’s Capital Market Reaches 8.09 Million Demat Accounts, But 56% Remain Outside Secondary Market

Nepal’s capital market has reached a new high in terms of public participation, with the number of Demat accounts crossing 8.09 million. However, data presented by the Securities Board of Nepal (SEBON) at the Parliamentary Finance Committee shows a significant gap between participation in the primary market and actual access to the secondary market. According to the data, Nepal had 8.095 million Demat accounts as of Ashoj 13, 2083, compared with the country’s total population of 29.16 million recorded in the 2021 census. This means Demat accounts are equivalent to around 27.75% of the total population. Meanwhile, the number of Mero Share accounts stood at 5.122 million, while the number of broker trading accounts reached 3.562 million as of the end of FY 2082/83. A comparison of these figures shows that only around 44% of Demat account holders have broker accounts for trading shares in the secondary market. This leaves approximately 56%, or 4.53 million Demat accounts, without access through a broker trading account. Similarly, compared with the 5.122 million Mero Share accounts, around 1.56 million account holders, or 30.45%, have not opened a trading account for secondary-market transactions. The data also shows increasing diversification in Nepal’s primary capital market. Ordinary shares account for 46.26% of the total capital raised through primary-market instruments. Debentures account for 31.03%, followed by mutual funds at 14.81%, specialized investment funds at 5.17%, and preference shares at 2.17%. The figures indicate that while public participation in Nepal’s capital market has expanded substantially, participation remains more concentrated in the primary market, with a considerable portion of Demat and Mero Share account holders yet to enter the secondary market.