Popular Abbreviations Of Nepali Share Market

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In the stock market, people love to use abbreviations. Each country has its own special words and shortcuts for trading. Today, we will explore the popular abbreviations of the Nepali share market. Get ready because it’s going to be an exciting ride! Let’s dive in and learn all about these cool abbreviations!

Table of Contents

SEBON (The Securities Board of Nepal)

The Securities Board of Nepal is the authoritative regulatory body responsible for overseeing and managing the securities markets in Nepal. Established by the Government of Nepal on June 7, 1993, SEBON plays a crucial role in safeguarding investor interests and promoting capital market development. With the power conferred by the Securities Related Act of 2006, SEBON effectively regulates and supervises securities-related activities, including issuance, purchase, sale, and exchange. By mobilizing essential capital for the country’s economic growth, SEBON contributes significantly to Nepal’s financial landscape.

AMC (An Asset Management Company)

An Asset Management Company (AMC) is a company that takes care of people’s money. They handle investments and make decisions for individuals or organizations, trying to make them more money.

 SEBON (The Securities Board Of Nepal)

The Stockbroker Association of Nepal (SEBON) is a group of people who represent stockbrokers in Nepal. They work together to help the stock market grow. They share information and speak up for stockbrokers when they need better conditions for doing business.

MBAN (The Merchant Banker Association of Nepal)

 The Merchant Banker Association of Nepal (MBAN) brings merchant bankers together in Nepal. Merchant bankers provide many financial services, like helping companies sell their shares to the public and advising on company mergers. MBAN looks out for the interests of its members and helps Nepal’s financial sector grow.

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NEPSE (The Nepal Stock Exchange Ltd.)

The Nepal Stock Exchange Ltd. (NEPSE) is the only place in Nepal where people can trade stocks and bonds. It’s like a marketplace for buying and selling these securities. NEPSE is important because it helps people invest money and supports the country’s economic growth.

BTI(Banker to the Issue)

 Banker to the Issue (BTI) is a special bank that helps companies when they want to sell their shares to the public for the first time. The BTI collects money from people who want to buy those shares and ensures the process goes smoothly. They act as a bridge between the company and the investors.

BO (Beneficiary Owner)

 Beneficiary Owner (BO) is the person who owns shares, but they are held electronically. In the stock market, the BO is the one who enjoys the benefits of ownership, like getting dividends or attending meetings where important decisions are made.

NOTS (The NEPSE Online Trading System Ltd.)

 The NEPSE Online Trading System Ltd. (NOTS) is a platform provided by NEPSE that lets people trade stocks and bonds using computers or phones. It’s a convenient way to buy and sell securities without needing to go to a physical location. NOTS helps investors make trades quickly and easily.

CBI (The Central Bureau of Investigation )

The Central Bureau of Investigation (CBI) is Nepal’s very important investigative agency. They investigate various crimes, including financial fraud, corruption, and economic offences. The CBI helps maintain law and order and keeps things fair.

CDSC (Central Depository Services)

 The CDS and Clearing Ltd. (Central Depository Services) is like a big safe for securities in Nepal. They keep records of who owns what and help buy and sell securities. CDSC makes it safer and easier to trade securities without having paper documents.

CIS ( Collective Investment Scheme)

 A Collective Investment Scheme (CIS) is when many people put their money together and let a professional manager invest it for them. It’s like a team effort to make investments and get the benefits. CIS includes mutual funds and other investment options that help people diversify their portfolios.

IPF (The Investor Protection Fund)

 The Investor Protection Fund (IPF) is like an insurance policy for investors. It protects them if something goes wrong in the stock market. If a market intermediary does something wrong or goes bankrupt, the IPF can compensate eligible investors who suffer losses.

DP (The Investor Protection Fund)

 A Depository Participant (DP) is a middleman who helps investors with their electronic securities. They assist in opening accounts, converting physical securities into electronic form, and ensuring the securities are transferred properly.

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GON (Government of Nepal)

Government of Nepal (GON) When we talk about the Government of Nepal (GoN), we refer to the people responsible for running the country. They make plans, create rules, and control different areas, like the stock market, to help the economy grow and stay stable.

ICAN (Institute of Chartered Accountants of Nepal)

The Institute of Chartered Accountants of Nepal (ICAN) is an organization of professional accountants in Nepal. ICAN’s job is to ensure accountants follow the rules, pass tests to prove their skills, set professional standards, and encourage honesty and good behaviour in accounting.

IPO (Initial Public Offering)

 An Initial Public Offering (IPO) is when a company decides to sell its shares to the public for the first time, allowing it to get money from investors in exchange for ownership. IPOs give companies a chance to get more money and grow.

ISIN (International Securities Identification Number)

 The International Securities Identification Number (ISIN) is a special code given to each security, like stocks or bonds, to help identify and trade them. ISINs are like standardized labels that provide important details about the security, such as where it comes from, what type it is, and who issued it.

KIM (Key Information Memorandum)

 The Key Information Memorandum (KIM) is a document that gives important information about a mutual fund to people who might want to invest in it. It tells you things like the goal of the investment, the risks involved, the fees and costs, how well it has done in the past, and other useful details to help you make smart choices.

MBs (Merchant Bankers)

 Merchant Bankers (MBs) are financial institutions or experts who offer different services related to the stock market. They help companies sell their securities, manage the process of going public, advise on mergers and acquisitions, and provide financial solutions for businesses. MBs play a big role in helping companies raise money and make important business deals.

MFs (Mutual Funds)

Mutual Funds are investment tools that gather money from different investors to buy various investments. Professionals manage these funds, allowing people to invest in many assets and strategies.

NAV (Net Asset Value)

Net Asset Value shows the value of each unit in a mutual fund or investment plan. To calculate it, you divide the total value of the fund’s assets by the number of units available. NAV tells you the real worth of the investments and helps determine how much it costs to buy or sell units.

PSU (Public Sector Undertaking)

 Public Sector Undertaking refers to companies owned by the government in Nepal. PSUs work in different fields and play a big part in the country’s economy. They have specific rules and government oversight.

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QIB (Qualified Institutional Buyer)

 Qualified Institutional Buyers are institutions like banks, insurance companies, and mutual funds that meet certain requirements. They can participate in exclusive investment opportunities that regular individual investors can’t access.

RII (Retail Individual Investor)

 Retail Individual Investors are regular people who invest their money in small amounts. They don’t invest on behalf of institutions. RII investors have different preferences and risks compared to institutional investors.

SRO (Self Regulatory Organization)

 Self Regulatory Organizations are entities that control and supervise members within specific industries. In the securities market, SROs create and enforce rules, standards, and codes of conduct to ensure fairness, protect investors, and maintain a reliable market.

CGT (Capital Gain Tax) 

 Capital Gain Tax is a tax on the profits earned when selling investments like stocks or real estate. It’s calculated based on the difference between the purchase and selling prices.

STT (Securities Transaction Tax)

Securities Transaction Tax is a small tax charged when buying or selling securities in the stock market. It helps the government generate revenue and keep the market stable.

UCC (Unique Client Code) 

 A unique Client Code is a special identification number given to each investor in the securities market. It helps keep track of individual transactions, holdings, and other important information.

UIN (Unique Identification Number) 

 A unique Identification Number is a unique code used to identify individuals or entities. In the securities market, UIN may refer to a special identification number given to investors or participants to meet regulatory requirements and keep records.

VCF (Venture Capital Fund)

 A special fund that invests in businesses to help them grow. It provides financial support to startups and promising companies.

DMAT (Dematerialization of securities)

 A process that converts physical certificates of stocks and bonds into electronic form, making it easier and safer to trade and hold investments.

WIW (World Investors Week)

 A global event dedicated to raising awareness about investing and financial literacy aims to educate people about the benefits and risks of investing and promote responsible financial decision-making.

DIS (Debit Instruction Slip)

DIS, A form used to authorize the deduction of funds from a bank account. It is commonly used for making payments, settling bills, or transferring money.

SASRF (South Asian Securities Regulators Forum)

 An association that brings together regulatory authorities from South Asian countries to discuss and collaborate on securities market regulations and investor protection.

ANNA (Associations of National Numbering Agencies)

 An organization that coordinates the assignment and management of unique identification codes for financial instruments worldwide. These codes help facilitate efficient trading and settlement processes.

AFIE (Asia Forum for Investor Education)

 AFIE, A platform that promotes investor education and awareness across Asia. It provides resources, training programs, and information to help individuals make informed investment decisions.

OECD (Organization for Economic Cooperation and Development)

 OECD, An international organization that promotes economic growth, trade, and social well-being. It facilitates cooperation among countries to address global challenges and develop policies for sustainable economic development.

APEC (Asia-Pacific Economic Cooperation)

APEC, A regional forum that promotes economic cooperation and trade among countries in the Asia-Pacific region. It aims to foster economic growth, prosperity, and sustainable development.

US SEC (United States Securities and Exchange Commission)

 The regulatory body oversees and enforces securities laws in the United States. It aims to protect investors, maintain fair and efficient markets, and facilitate capital formation.

ASIC (Australian Securities & Investment Commission)

The regulatory agency ensures fair and transparent financial markets in Australia. It regulates and supervises companies, financial services providers, and securities offerings to protect investors.

SEBI (Securities and Exchange Board of India)

SEBI is the regulatory authority for the securities market in India. It oversees the functioning of stock exchanges, brokers, and other market intermediaries to promote fair and transparent trading practices. 

FSA (Financial Services Agency, Japan)

 The Japanese government agency is responsible for overseeing and regulating the financial services industry in Japan. It ensures the stability and integrity of financial markets and protects the interests of investors.

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