Securities Market
in Nepal
Fundamentals of
INVESTMENT
THE TEAM
SANDIP GIRI ANKIT PARAJULI UMESH RAYA SAHIL SHRIWASTAV
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Defination
The securities market in Nepal refers to the marketplace where
financial instruments like stocks, bonds, and other securities are
bought and sold, providing a platform for companies to raise
capital and investors to trade these financial assets. The primary
venue for securities trading in Nepal is the Nepal Stock Exchange
(NEPSE), which is regulated by the Securities Board of Nepal
(SEBON) to ensure fair practices and protect investor interests.
The market helps facilitate economic growth by linking capital-
seeking businesses with investors.
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TYPES OF Securities Markets
Primary Secondary Broker & Broker Dealer
Markets Markets Dealer Markets Markets
Markets
The primary market is The secondary Broker markets involve Broker markets are Dealer markets are
where new securities market is where intermediaries markets where markets where
are issued and sold previously issued facilitating trades, while brokers facilitate dealers buy and sell
for the first time to securities are traded dealer markets involve transactions between securities for their
raise capital. between investors. dealers buying and buyers and sellers. own account.
selling securities for
their own account.
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Alternative Trading System
The Third Market The Fourth Market
The third market refers to the over-the-counter (OTC) The fourth market refers to the direct trading of securities between
market where institutional investors trade securities institutional investors, such as mutual funds or pension funds,
listed on exchanges, typically outside of the formal without the involvement of brokers or exchanges.
exchange system, without using brokers or dealers.
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General Market
Conditions
Bull Market
Rising Prices
Investor Confidence
Increased Buying Activity
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Bear Market
Falling Prices
Pessimism
Reduced Buying
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Globalization of Securities Markets
Importance of international Investing Foreign Risk in International
Securities markets Securities Investing
• Global Investment Opportunities: • Diversification: Investing in • Currency Risk: Investing
International securities markets provide foreign securities helps Nepali internationally exposes Nepali
investors access to diverse global investors diversify their investors to fluctuations in foreign
assets, enhancing portfolio portfolios, reducing risk. exchange rates, affecting returns.
diversification. • Higher Returns: It offers • Political and Economic Instability:
• Capital Access: They allow companies opportunities for higher returns Changes in foreign governments
or economies can impact
to raise capital from international by accessing global markets
investment performance.
investors, expanding their growth with better growth potential.
potential. • Market Volatility: Global markets
• Currency Diversification: It can experience unpredictable
• Market Liquidity: They increase market provides exposure to different fluctuations, increasing the overall
liquidity by facilitating cross-border currencies, helping manage risk of international investments. 8
trading and investments. currency risk and inflation.
Types of
Securities
Transactions
Long Purchase
A long purchase is the buying of a security with the
expectation that its price will rise, allowing the investor
to sell it later for a profit.
Short Selling
Short selling involves borrowing a security and
selling it with the intention of buying it back later
at a lower price, profiting from the price decline.
Margin Trading
Margin trading is the practice of borrowing funds
from a broker to purchase securities, using the
investor's existing investments as collateral.
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THANK YOU!