Initial Public Offering (IPO)
An Initial Public Offering (IPO) is the process through which a privately held company issues shares of stock to the public for the first time. Also known as "going public," an IPO transforms a business from a privately owned and operated entity into one that is owned by public stockholders.
Initial Public Offering (IPO) |
Here you will know what are the requirements to apply for IPO in Nepal (how IPO can be applied in Nepal).
What you need to apply for Initial Public Offering (IPO) as an Individual
1. Savings Bank Account
2. Demat Account
3. Mero Share Account (optional), but recommended getting Mero Share Account for convenience and for online application of IPO.
1. Saving Bank account: Most of us already
have a saving account and if you already have a savings bank account then you
can proceed to 2nd step directly. And even if you already have a savings bank
account then you must consider ASBA charges charged by your bank. Many banks
provide ASBA service for free but some banks charges at different rates. So,
before you start using a particular bank for applying for IPO, make sure you
are aware of ASBA charges. And ASBA fees are charged irrespective of the
allocation of shares to you. You applied for IPO then the ASBA fee will be
charged whether the share allotted to you or not.
2. Demat account: A demat account is
an account to hold financial securities in electronic form. After you have a
saving account you need to get a demat account. And to open demat account you
need to fill the form as asked/required by the demat account provider. You can
open demat account at the bank or brokers. Though it is not mandatory to get
Mero Share it is recommended to apply for demat account and Mero Share at
the same time. Even if you don't have Mero Share you can apply for IPO, but you
need to visit the bank personally which will demand extra time and effort compared
to applying share using Mero Share. So, if you have Mero Share then you can
apply for IPO online wherever you are. Thus, it is better to get demat account
and Mero Share at the same time.
3. Mero Share account: Mero Share is an
online portal of CDSC (Central Depository System and Clearing Ltd) which
provides the details of share transactions with their demat account. You need
to access the portal of CDSC Mero share from their website and mobile app. You
can do the following things using the Mero Share account.
a. Access your portfolio
(Number of Share/Scrip held and their price, Previous Closing Price, Value as
Of Previous Closing Price, Last Transaction Price (LTP), Value as of LTP)
b. You can apply for
Initial Public Offering (IPO).
c. Transfer the shares
you sold (EDIS)
Now after having Savings Account, demat account & Mero share account you can apply for Initial Public Offering (IPO).
Most banks provide demat account and Mero Share account for free during promotional periods (1 to 2 years) whereas others charge Rs. 100 per year for demat account and Rs.50 per year for Mero Share account.
0 Comments
No spam allowed ,please do not waste your time by posting unnecessary comment Like ads of other site etc.