๐ Bilingual Financial Glossary — 2026
50 Financial Terms
Every Nepali Investor Should Know
เคจेเคชाเคฒी เคฐ เค ंเค्เคฐेเคीเคฎा เฅซเฅฆ เคฎเคนเคค्เคค्เคตเคชूเคฐ्เคฃ เคตिเคค्เคคीเคฏ เคถเคฌ्เคฆเคนเคฐू
From NAV to NEPSE, IPO to Capital Gains — every key investing term explained in simple Nepali and English. Searchable, filterable, and bookmark-worthy.
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Understanding financial terminology is the first real step toward becoming a confident investor. Whether you're browsing the NEPSE trading floor, applying for an IPO on MeroShare, or reviewing a mutual fund's NAV update, knowing what each term means — in both English and Nepali — gives you a meaningful edge.
Nepal's financial markets use a mix of Nepali, Sanskrit-derived, and English terminology. This glossary bridges that gap with 50 essential terms, explained in plain language, organized into five categories, and searchable in real time. Bookmark this page as your go-to reference.
Basic
Market (NEPSE)
Investing
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50 terms found
#01
Share (Equity / Stock)
๐ณ๐ต เคธेเคฏเคฐ
A unit of ownership in a company. When you buy a share, you become a part-owner (shareholder) of that company and are entitled to a portion of its profits (dividends) and assets. In Nepal, shares are traded on NEPSE and held in DEMAT accounts. Face value is typically NPR 100.
#02
Dividend
๐ณ๐ต เคฒाเคญांเคถ
A portion of a company's profit distributed to its shareholders. In Nepal, companies declare dividends as cash dividends (เคจเคเคฆ เคฒाเคญांเคถ — direct payment to your bank) or bonus shares (เคฌोเคจเคธ เคธेเคฏเคฐ — additional free shares added to your DEMAT). Dividend income is subject to 5% withholding tax.
#03
Capital
๐ณ๐ต เคชूँเคी
The money or assets used to start, grow, or invest in a business or financial activity. In the context of NEPSE, it refers to the funds you invest in shares or other securities. Paid-up capital (เคुเค्เคคा เคชूँเคी) is a key metric shown in every listed company's balance sheet.
#04
Interest
๐ณ๐ต เคฌ्เคฏाเค
The cost of borrowing money, or the reward for lending/saving money. Expressed as a percentage per year (annual interest rate). Nepal Rastra Bank (NRB) sets the policy rate, which influences bank deposit interest rates. For investors, interest income from bank deposits or bonds is a key source of fixed returns.
#05
Asset
๐ณ๐ต เคธเคฎ्เคชเคค्เคคि
Anything of economic value owned by a person or company — shares, bonds, real estate, cash, or equipment. In accounting, assets appear on the left side of a balance sheet. For investors, understanding a company's total assets helps assess its financial health and valuation.
#06
Liability
๐ณ๐ต เคฆाเคฏिเคค्เคต
Financial obligations or debts owed by a company or individual. Liabilities appear on the right side of a balance sheet. A company with high liabilities relative to assets may face financial stress. Key metric: Debt-to-Equity Ratio — lower is generally safer for investors.
#07
Portfolio
๐ณ๐ต เคฒเคाเคจी เคธँเค्เคฐเคน
The collection of all financial investments held by an investor — shares, mutual funds, bonds, and other assets together. Diversifying your portfolio (เคตिเคตिเคงीเคเคฐเคฃ) across multiple sectors (banking, hydropower, insurance) reduces risk. You can view your NEPSE portfolio anytime on MeroShare.
#08
Inflation
๐ณ๐ต เคฎुเคฆ्เคฐाเคธ्เคซीเคคि
The general rise in prices over time, which reduces the purchasing power of money. If inflation is 7% and your investment returns 5%, you are losing real value. Nepal's annual inflation has ranged between 5–10% in recent years, making inflation-beating investments critical for wealth preservation.
#09
Profit / Return
๐ณ๐ต เคจाเคซा / เคฒाเคญ
The financial gain made from an investment or business activity. In stock investing, profit comes from two sources: capital gains (selling shares at a higher price than you bought) and dividends. Return is usually expressed as a percentage of the original investment.
#10
Loss
๐ณ๐ต เคाเคा / เคจोเค्เคธाเคจ
The negative outcome when investments decline in value or expenses exceed income. In NEPSE, a loss occurs when the selling price of a share is lower than the buying price. Capital losses in Nepal cannot currently be offset against capital gains from other sources for tax purposes.
#11
NEPSE (Nepal Stock Exchange)
๐ณ๐ต เคจेเคชाเคฒ เคธ्เคเค เคเค्เคธเคेเคจ्เค
Nepal's only stock exchange, established in 1993, headquartered in Kathmandu. NEPSE is regulated by SEBON and lists companies from banking, hydropower, insurance, manufacturing, and microfinance sectors. Trading hours are Sunday–Thursday, 11 AM–3 PM NST. The NEPSE Index is the benchmark for overall market performance.
#12
NEPSE Index (เคธूเคเคाเค्เค)
๐ณ๐ต เคธूเคเคाเค्เค
A market-capitalization-weighted index tracking the overall performance of all stocks listed on NEPSE. It is Nepal's equivalent of India's SENSEX or the US's S&P 500. The all-time high was 3,198.60 points (August 2021). A rising index signals market growth; a falling index signals broad selling pressure.
#13
IPO (Initial Public Offering)
๐ณ๐ต เคช्เคฐाเคฐเคฎ्เคญिเค เคธाเคฐ्เคตเคเคจिเค เคจिเคฐ्เคเคฎเคจ
The first time a company offers shares to the general public. In Nepal, IPO applications are submitted entirely online through MeroShare's C-ASBA system. The allotment process is transparent and lottery-based when applications exceed supply. Minimum application: typically NPR 1,000 (10 units × NPR 100 face value).
#14
FPO (Further Public Offering)
๐ณ๐ต เคฅเคช เคธाเคฐ्เคตเคเคจिเค เคจिเคฐ्เคเคฎเคจ
When an already-listed company issues additional shares to the public to raise more capital. Unlike an IPO, an FPO involves a company already trading on NEPSE. It can dilute existing shareholders' stakes (reduce ownership percentage) unless they participate in the offering. Applied for via MeroShare.
#15
Right Share (เคนเคเคช्เคฐเคฆ เคธेเคฏเคฐ)
๐ณ๐ต เคนเคเคช्เคฐเคฆ เคธेเคฏเคฐ
An offering that gives existing shareholders the right to buy additional new shares — at face value (NPR 100) — before they are offered to the public. This protects existing shareholders from dilution. In Nepal, right share subscriptions are one of the most common ways listed companies raise additional capital.
#16
Bonus Share (เคฌोเคจเคธ เคธेเคฏเคฐ)
๐ณ๐ต เคฌोเคจเคธ เคธेเคฏเคฐ
Free additional shares issued to existing shareholders from a company's retained earnings or reserves. If you hold 100 shares and a 20% bonus is declared, you receive 20 extra shares at no cost. Your total holding increases, but each share's book value decreases proportionally. Bonus shares are currently not taxable on issuance in Nepal.
#17
SEBON
๐ณ๐ต เคงिเคคोเคชเคค्เคฐ เคฌोเคฐ्เคก เคจेเคชाเคฒ
Securities Board of Nepal — the apex regulatory body for Nepal's capital markets. SEBON licenses brokers, merchant banks, and mutual fund managers; approves IPOs; sets investor protection rules; and enforces the Securities Act 2063. All legitimate investment intermediaries in Nepal must be SEBON-registered. Website: sebon.gov.np
#18
DEMAT Account (BOID)
๐ณ๐ต เคกिเคฎ्เคฏाเค เคाเคคा
A digital account that holds your shares and securities in electronic form — replacing old paper certificates. Maintained by CDSC (Central Depository System and Clearing Limited). Each DEMAT account has a unique 16-digit BOID number, which is your identity on NEPSE and MeroShare. A DEMAT account is mandatory for all NEPSE investing.
#19
MeroShare
๐ณ๐ต เคฎेเคฐोเคธेเคฏเคฐ
CDSC's official online platform (meroshare.cdsc.com.np) for applying in IPOs, tracking your share portfolio, viewing WACC (average cost), and managing DEMAT-related activities. C-ASBA (Central Application Supported by Blocked Amount) is integrated into MeroShare for IPO applications — blocking your bank funds during the application period.
#20
TMS (Trading Management System)
๐ณ๐ต เค्เคฐेเคกिเค เคฎ्เคฏाเคจेเคเคฎेเคจ्เค เคธिเคธ्เคเคฎ
The online trading platform provided by NEPSE-licensed brokers through which investors can place buy and sell orders for listed shares. You log in to your broker's TMS portal, search for a stock by its ticker symbol (e.g., NABIL for Nabil Bank), enter the quantity (Kitta) and price, and submit orders during market hours.
#21
NAV (Net Asset Value)
๐ณ๐ต เคुเคฆ เคธเคฎ्เคชเคค्เคคि เคฎूเคฒ्เคฏ
The per-unit value of a mutual fund, calculated as (Total Assets − Liabilities) ÷ Number of Units Outstanding. NAV is published daily for open-ended funds and weekly for closed-ended funds by SEBON mandate. A rising NAV means your mutual fund investment is growing. Compare: share market price vs NAV for closed-end funds to spot premium/discount.
#22
Mutual Fund
๐ณ๐ต เคธเคนเคญाเคी เคोเคท
A pooled investment vehicle managed by a professional Asset Management Company (AMC) that collects money from many investors and invests in a diversified portfolio of NEPSE shares, bonds, and money market instruments. All Nepal mutual funds are SEBON-regulated. Options include open-ended funds (liquid, daily NAV) and closed-ended funds (listed on NEPSE).
#23
SIP (Systematic Investment Plan)
๐ณ๐ต เคจिเคฏเคฎिเคค เคฒเคाเคจी เคฏोเคเคจा
A disciplined investment approach where you invest a fixed amount regularly (monthly) into a mutual fund regardless of market conditions. This strategy, called rupee-cost averaging, reduces the impact of market volatility. In Nepal, SIPs can be started from as little as NPR 1,000/month via open-ended fund AMCs like Siddhartha Capital or NIMB Ace Capital.
#24
Capital Gain
๐ณ๐ต เคชूँเคीเคเคค เคฒाเคญ
The profit earned from selling an asset (shares, property) at a price higher than its purchase price. In Nepal, short-term capital gains (shares held ≤1 year) are taxed at 10%; long-term capital gains (held >1 year) at 7.5% (Budget 2083/84 rates). Tax is automatically deducted by your broker at the point of sale.
#25
Market Capitalization
๐ณ๐ต เคฌเคाเคฐ เคชूँเคीเคเคฐเคฃ
The total market value of a company's outstanding shares. Formula: Current Share Price × Total Number of Shares. Large-cap companies (e.g., major commercial banks) have high market caps; small-cap firms have lower caps. NEPSE's total market capitalization reflects the overall size of Nepal's equity market — a key indicator of capital market depth.
#26
P/E Ratio (Price-to-Earnings)
๐ณ๐ต เคฎूเคฒ्เคฏ-เคเคฏ เค
เคจुเคชाเคค
A valuation metric: Share Price ÷ Earnings Per Share (EPS). A high P/E means investors are paying a premium for future growth expectations; a low P/E may indicate undervaluation or poor prospects. Nepal's banking sector typically trades at P/E ratios of 12–20×. Compare P/E across companies in the same sector for fair analysis.
#27
EPS (Earnings Per Share)
๐ณ๐ต เคช्เคฐเคคि เคธेเคฏเคฐ เคเคฏ
The portion of a company's profit allocated to each outstanding share. Formula: Net Profit ÷ Total Number of Shares. Higher EPS indicates greater profitability per share. In Nepal, EPS is a key metric used to compare listed companies — particularly banks — and is published in quarterly financial reports submitted to SEBON and NEPSE.
#28
Book Value
๐ณ๐ต เคชुเคธ्เคคเคเคเคค เคฎूเคฒ्เคฏ
The net value of a company per share calculated from its balance sheet: (Total Assets − Total Liabilities) ÷ Number of Shares. If a share trades below its book value, it may be considered undervalued. In Nepal, book value is published quarterly and is a key indicator for fundamental analysis of banking and finance company shares.
#29
Bull Market (เคคेเคी เคฌเคाเคฐ)
๐ณ๐ต เคคेเคी เคฌเคाเคฐ
A sustained period where share prices are rising or expected to rise — generally defined as a 20%+ gain from recent lows. Investor confidence is high, trading volume is strong, and IPO activity peaks. Nepal experienced a powerful bull market from 2019–2021, when the NEPSE Index rose from ~1,100 to its all-time high of 3,198 points.
#30
Bear Market (เคฎंเคฆी เคฌเคाเคฐ)
๐ณ๐ต เคฎंเคฆी เคฌเคाเคฐ
A sustained period of falling share prices — typically a 20%+ decline from recent highs. Investor sentiment turns negative, selling pressure increases, and IPO subscriptions slow. Nepal experienced a prolonged bear market from mid-2021 onward, with many investors who bought at peak prices facing losses of 40–50% within 18 months. Patience and long-term thinking are essential.
#31
NRB (Nepal Rastra Bank)
๐ณ๐ต เคจेเคชाเคฒ เคฐाเคท्เค्เคฐ เคฌैंเค
Nepal's central bank, established in 1956. NRB regulates all commercial banks, development banks, and finance companies; sets monetary policy; controls foreign exchange; and manages the Nepali Rupee. For investors, NRB's directives directly affect banks' ability to pay dividends and their overall profitability — making NRB policy a key driver of NEPSE's banking sub-index.
#32
Fixed Deposit
๐ณ๐ต เคฎिเคฏाเคฆी เคจिเค्เคทेเคช
A bank deposit with a fixed tenure (3 months to 5 years) at a guaranteed interest rate, typically higher than a savings account. A low-risk, capital-protected investment. In Nepal, FD rates typically range 8–12% annually. Unlike shares, FDs carry no market risk — but returns often fail to beat inflation over the long term. Ideal for conservative investors.
#33
CD Ratio (Credit-to-Deposit)
๐ณ๐ต เคเคฐ्เคा-เคจिเค्เคทेเคช เค
เคจुเคชाเคค
The ratio of a bank's total loans to its total deposits. Regulated by NRB with a maximum ceiling (currently 90%). A high CD ratio means a bank has lent out most of its deposits — increasing profitability but also risk. Investors in bank stocks monitor CD ratios closely as they signal lending capacity and potential dividend sustainability.
#34
NPL (Non-Performing Loan)
๐ณ๐ต เคเคฐाเคฌ เคเคฐ्เคा / เคจिเคท्เค्เคฐिเคฏ เคเคฐ्เคा
Loans where the borrower has stopped making payments for 90+ days. High NPL ratios are a red flag for bank stocks, as they indicate rising credit risk and potential for future losses. Nepal's banking sector saw NPLs rise sharply in 2023–24 due to economic slowdown. A bank with NPL above 5% warrants caution from equity investors.
#35
NRN Account (NRFC)
๐ณ๐ต เค
เคจिเคตाเคธी เคจेเคชाเคฒी เคตिเคฆेเคถी เคฎुเคฆ्เคฐा เคाเคคा
A specialized bank account for Non-Resident Nepalis that can hold foreign currencies (USD, GBP, EUR, AUD, etc.) in Nepal. The Non-Resident Nepali Foreign Currency (NRFC) account is the financial gateway for NRN investment in NEPSE — funds are transferred from abroad, converted to NPR, and channeled to brokers or AMCs. Repatriation of proceeds is permitted subject to NRB rules.
#36
ROE (Return on Equity)
๐ณ๐ต เคธ्เคตाเคฎिเคค्เคตเคฎा เคช्เคฐเคคिเคซเคฒ
Measures how efficiently a company generates profit from shareholders' equity. Formula: Net Profit ÷ Shareholders' Equity × 100. A higher ROE (above 15%) generally signals a well-managed, profitable company. In Nepal, commercial banks with consistently high ROE are preferred by long-term investors as they tend to maintain dividend-paying capacity.
#37
Merger / Acquisition
๐ณ๐ต เคเคीเคเคฐเคฃ / เคฎเคฐ्เคเคฐ
When two or more companies combine into one entity (merger) or one company buys another (acquisition). NRB's merger policy drove a wave of banking consolidation in Nepal — reducing commercial banks from 27 to 20 between 2020–2025. For NEPSE investors, mergers can affect share pricing, bonus share issuance, and overall market cap calculations.
#38
CAR (Capital Adequacy Ratio)
๐ณ๐ต เคชूँเคी เคชเคฐ्เคฏाเคช्เคคเคคा เค
เคจुเคชाเคค
A measure of a bank's financial strength: the ratio of its capital to its risk-weighted assets. NRB mandates a minimum CAR of 11% for Nepali commercial banks. A higher CAR means greater buffer against losses. Investors in bank stocks use CAR to assess financial safety. Banks consistently below the NRB minimum face regulatory intervention and can't pay dividends.
#39
Debenture / Bond
๐ณ๐ต เคเคฃเคชเคค्เคฐ
A fixed-income debt instrument issued by companies or government to raise funds from the public. Debenture holders are creditors (not owners) of the company and receive a fixed interest rate for a specified period, then get their principal back at maturity. Safer than shares but with lower returns. Debentures are listed on NEPSE and can be traded on the secondary market.
#40
Remittance
๐ณ๐ต เคฐेเคฎिเค्เคฏाเคจ्เคธ / เคตिเคช्เคฐेเคทเคฃ
Money sent by Nepali workers abroad to family members in Nepal. Remittances account for over 25% of Nepal's GDP — one of the highest in the world — making them a massive driver of domestic consumption and bank liquidity. Strong remittance inflows support bank deposit growth, credit capacity, and ultimately NEPSE market performance, especially in the banking sector.
#41
PAN (Permanent Account Number)
๐ณ๐ต เคธ्เคฅाเคฏी เคฒेเคा เคจเคฎ्เคฌเคฐ
A unique 9-digit number assigned by Nepal's Inland Revenue Department (IRD) for tax identification purposes. PAN is mandatory for all NEPSE investors, DEMAT account holders, and anyone earning income in Nepal. It is used for filing income tax returns, tracking capital gains, and is required for profit repatriation. Apply at the nearest IRD office or online at ird.gov.np.
#42
TDS (Tax Deducted at Source)
๐ณ๐ต เคฎूเคฒเคธ्เคฅाเคจเคฎा เคเคฐ เคเคाเคจ
Tax automatically deducted at the point of payment by the payer, before the income reaches the recipient. In Nepal's capital market: 5% TDS on dividends is deducted by the company before paying shareholders; 10% / 7.5% capital gains tax is deducted by your broker at the point of share sale. This makes tax compliance largely automatic for NEPSE investors.
#43
CDSC (Central Depository System)
๐ณ๐ต เคेเคจ्เคฆ्เคฐीเคฏ เคจिเค्เคทेเคช เคคเคฅा เคธเคฎाเคถोเคงเคจ เคฒिเคฎिเคेเคก
Central Depository System and Clearing Limited — the institution that maintains all DEMAT accounts and facilitates the settlement of share trades in Nepal. When you buy shares on NEPSE, CDSC ensures the shares are credited to your DEMAT account (T+2 settlement). CDSC also operates MeroShare and manages the C-ASBA system for IPO applications.
#44
Fiscal Year (FY)
๐ณ๐ต เคเคฐ्เคฅिเค เคตเคฐ्เคท
Nepal's financial year runs from 1st Shrawan to 31st Ashadh (mid-July to mid-July) of the Bikram Sambat calendar — different from the global January–December year. All listed companies publish quarterly and annual financial results according to this calendar. For example, FY 2081/82 is the fiscal year ending in July 2025 (Ashadh 2082 BS).
#45
Repatriation
๐ณ๐ต เคชुเคจःเคธ्เคตเคฆेเคถ เคช्เคฐेเคทเคฃ
The transfer of profits, dividends, or invested capital from Nepal back to a foreign country. Governed by Nepal Rastra Bank's Foreign Exchange Regulation Act 2019. For NRN investors, repatriation rights are guaranteed under FITTA 2019. Budget 2083/84 removed the mandatory prior-NRB-approval requirement, replacing it with a simpler notification system. Taxes must be fully settled before repatriation.
#46
WACC (Weighted Average Cost)
๐ณ๐ต เคญाเคฐिเคค เคเคธเคค เคฒाเคเคค เคฎूเคฒ्เคฏ
In Nepal's context, WACC refers to the Weighted Average Cost Price of your shares — the average price at which you acquired your total holding in a stock, accounting for all buy transactions. CDSC calculates and displays your WACC for each stock in your MeroShare portfolio. Your capital gain for tax purposes is calculated as: Sale Price − WACC.
#47
AGM (Annual General Meeting)
๐ณ๐ต เคตाเคฐ्เคทिเค เคธाเคงाเคฐเคฃ เคธเคญा
A yearly meeting of a company's shareholders where the board presents the annual financial report, declares dividends, elects directors, and addresses shareholder questions. For NEPSE investors, AGM announcements are critical — this is when dividend and bonus share decisions are officially made. AGM dates and agendas are published on the NEPSE and SEBON websites.
#48
C-ASBA
๐ณ๐ต เคธी-เคเคธ्เคฌा (เคेเคจ्เคฆ्เคฐीเคृเคค)
Central Application Supported by Blocked Amount — Nepal's IPO application system managed by CDSC. When you apply for an IPO, your application amount is blocked (not debited) in your linked bank account. If you don't receive an allotment, the full amount is unblocked. If allotted, only the allotted amount is debited. Accessible through MeroShare. Banks must be C-ASBA-enabled to participate.
#49
Book Closure Date
๐ณ๐ต เคिเคคाเคฌ เคฌเคจ्เคฆीเคो เคฎिเคคि (เคिเค्เคा เคाเค्เคจे เคฎिเคคि)
The deadline by which you must hold shares to be eligible for an upcoming dividend, bonus share, or right share offer. If the book closure date is 30th Bhadra and you buy shares after that date, you will not receive that year's dividend. Book closure dates are published on NEPSE and ShareSansar — savvy investors monitor them closely for timing entry and exit.
#50
Paid-up Capital
๐ณ๐ต เคुเค्เคคा เคชूँเคी
The total amount of money a company has received from shareholders in exchange for shares, up to the current date. Shown on the balance sheet as a key measure of company size in Nepal. NRB mandates minimum paid-up capital levels for banks (currently NPR 8 billion for commercial banks). For investors, a high paid-up capital with proportionally low profit may indicate inefficiency.
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Investor Education
Tips for Nepali Investors in 2026
Understanding terms is the foundation — here are four principles to put them to work.
Read Quarterly Reports (เคค्เคฐैเคฎाเคธिเค เคช्เคฐเคคिเคตेเคฆเคจ)
Every NEPSE-listed company must publish quarterly financial results. Read them for EPS trends, NPL movements (for banks), and dividend signals. Available free on SEBON's website and ShareSansar.
Track Book Closure Dates (เคिเค्เคा เคाเค्เคจे เคฎिเคคि)
Missing a book closure date means missing dividends. Use ShareSansar's dividend calendar or set alerts on Merolagani. Buy shares at least T+2 days before book closure to qualify for upcoming dividends.
Invest Systematically, Not Emotionally
Nepal's bull market peak (NEPSE 3,198) attracted massive new investors — many of whom bought at the top and faced 40–50% losses. A systematic SIP approach avoids timing risk and builds wealth steadily over years.
Only Use SEBON-Licensed Intermediaries
Never transfer money to individuals posing as brokers. Verify your broker's license on sebon.gov.np before opening an account. All legitimate TMS platforms are officially affiliated with NEPSE-licensed broker firms.
Ready to Start Investing in Nepal?
Open your DEMAT account, register on MeroShare, and put these 50 terms to work. Your financial literacy is your competitive edge.
Visit MeroShare →Disclaimer: This glossary is for educational purposes only. Definitions reflect Nepal's capital market regulations as of June 2026 (FY 2082/83). Tax rates cited are per Budget 2083/84 announcements, subject to parliamentary finalization. Always verify current regulations with SEBON (sebon.gov.np), NRB (nrb.org.np), or a licensed financial advisor before making investment decisions. Nothing in this article constitutes financial advice.
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