Frequently Asked Questions
1. What is a broker account?
A broker account (TMS account) is a trading account that you can open with a brokerage firm (like Sewa Securities Pvt. Ltd., Stock Broker No no. 54). This account provides you a platform to buy and sell securities from secondary market through a Demat account linked to the TMS account.
2. What are the charges of opening a broker account?
Opening a broker account is currently free.
3. How do I open a broker account (trading account)?
- We offer convenient options for opening a trading account. You may visit our office in Teku with the required documents, where our team will assist you in completing the KYC form.
- Alternatively, you can register your account online by visiting our website at www.sewasecurities.com.np or by logging in to https://tms54.nepsetms.com.np/login, selecting the option to open a TMS account, and following the step-by-step instructions.
4. What documents are needed when opening a broker account?
| In case of Individual account | In case of Corporate account |
|---|---|
| 1. Two recent Passport size photo | 1. Company Registration |
| 2. Citizenship certificate | 2. PAN Registration |
| 3. National ID card | 3. Memorandum of Association ( प्रबन्धपत्र ) |
| 4. PAN card | 4. Article of Association ( नियमावाली ) |
| 5. My Details (pdf file) from Meroshare | 5. Minute |
| 6. Birth certificate (In case of minor) | 6. Share Ownership certificate |
| 7. Tax clearance | |
| 8. Citizenship of Board Members |
5. What is the difference between a trading (broker) account and a Demat account?
A trading account (TMS) is registered with a brokerage firm to engage in transactions within the secondary market, while a Demat account is set up to maintain a record of shares, similar to how a bank account holds deposits in customers’ bank accounts.
6. How can we manage collateral from TMS?
Step 1: Go to the TMS dashboard
Step 2: Tab to Fund management
Step 3: Tab to collateral management
Step 4: Go to load collateral
Step 5: Select bank, account type and then submit.
7. How to place an order online?
Step 1: Go to the TMS dashboard
Step 2: Tab Order Management
Step 3: Go to Buy/Sell option
Step 4: Go to ‘INST’ option and choose according to the nature of selling stock
Step 5: Then Buy/Sell as per your requirement.
8. How to make payment through TMS?
Step 1: Log in to TMS
Step 2: Go to Fund management
Step 3: Select Fund Settlement
Step 4: Go to Buy Information
Step 5: Tick your Due Amount
Step 6: Click on Make Settlement
Step 7: Click on Proceed with Payment
Step 8: Click on EOD pay in
Step 9: Make Payment
1. What is EDIS, and how is it done?
- EDIS (Electronic Delivery Instruction Slip) is a system that allows investors to electronically transfer shares they have sold from their Demat account to the broker’s pool account. You can only sell shares that are available in your linked Demat account.
- The EDIS process involves calculation of WACC, calculating the applicable holding period, and authorizing the transfer of shares to complete the settlement.
2. What is WACC?
WACC stands for “Weighted Average Cost of Capital”. It denotes per unit cost of stock you are holding. Calculation of WACC is done to determine capital gain tax liability during the sale of shares. Capital gains tax applies only to profits from the sale of shares.
3. What if I do not transfer my shares on time?
You will have to pay a penalty of up to 20% if you do not transfer your shares within the next day of sale.
4. What is meant by book closure?
Book closure is a time period during which a company will not execute the transfer of shares of the company. The consequence of book closure is that the investor buying shares after book closure is not entitled to participate in the meeting of the company, receive dividends (cash or stock), or right share for the year for which book has been closed.
5. What is a CRN Number, and how to get it?
A CRN (Customer Registration Number) is a unique number provided by the bank.
It is used to apply for IPO/FPO/Right shares and to link your bank account with the Demat system. Without a CRN, you cannot apply for IPO/FPO/Right shares online.
- Visit your bank (where you have an account)
- Fill the CRN registration form
- Submit required documents
The bank issues your CRN number