If you've ever sold shares in Nepal's stock market, you've likely run into the term WACC (Weighted Average Cost of Capital). It's a mandatory step before you can transfer sold shares through EDIS — and if it's not done correctly and on time, you risk the 20% closeout penalty we covered in our Auto EDIS article. This guide walks you through exactly how to calculate WACC in Mero Share, step by step.
What Is WACC and Why Does It Matter?
WACC (Weighted Average Cost of Capital) is the average purchase price of your shares when you've bought the same stock at different prices and at different times — whether through IPOs, secondary market purchases, bonus shares, or rights shares. Mero Share uses this average price to calculate your capital gains tax when you sell. Without completing WACC, you cannot proceed to transfer your sold shares through EDIS.
Step 1: Calculate WACC via Purchase Source
- Log in to your Mero Share account at meroshare.cdsc.com.np.
- Go to My Purchase Source from the left-side menu.
- Click on Purchase Source, then enter or select the scrip (company symbol) you sold.
- Click Search — a list of your purchase transactions for that scrip will appear.
- Verify the purchase price shown. If it differs from your actual buying price (e.g., due to a bonus share adjustment), you can edit it and add a remark explaining the change.
- Tick the checkbox next to the transaction, then click Proceed.
- Accept the declaration and click Update. Your WACC is now calculated.
Step 2: Confirm Holding Period via My Holdings
Once WACC is calculated, you need to confirm your holding period, since it determines your capital gains tax rate.
- Go to My Purchase Source and click My Holdings.
- Select the scrip and click Search — you'll see the number of holding days along with whether it's short-term or long-term.
- If the holding period shown is incorrect, you can adjust it and add a remark.
- Tick the checkbox, click Proceed, accept the declaration, and click Update.
Step 3: Transfer Shares via My EDIS
With WACC and holding period confirmed, you can now complete the share transfer.
- Go to My EDIS from the left menu and click Transfer Shares.
- Click View Detail next to the relevant transaction.
- Review the WACC and transaction details, then click Proceed.
- Tick "I agree to deliver" and click Confirm.
- You'll see a message: "Successfully requested for transfer share." Your EDIS is complete.
Capital Gains Tax Rates Based on Holding Period
- More than 365 days (long-term): 5% capital gains tax
- Less than 365 days (short-term): 7.5% capital gains tax
- If shares are sold at a loss (below WACC), no capital gains tax applies.
Important Deadline to Remember
WACC and EDIS must be completed by 9 PM on T+1 (the day after your sale transaction). Missing this deadline results in a closeout, triggering the 20% penalty on the sold amount. For more detail on how this penalty works and how CDSC's upcoming Auto EDIS system may remove this risk entirely, read our related post: CDSC Auto EDIS: Sold Shares to Auto-Transfer.
Frequently Asked Questions (FAQ)
Can I change my WACC after it's calculated?
No, once WACC is confirmed and updated, it generally cannot be changed. Double-check your purchase price and remarks before clicking Update.
What if my scrip doesn't show a Pending WACC option?
If WACC has already been calculated for a previous partial sale of the same scrip, it may already be set for your remaining shares. Check "My Holdings" to confirm before assuming there's an error.
Do I need to calculate WACC for bonus shares separately?
Yes. Bonus shares typically have a purchase price adjustment reflected in Mero Share, and you should verify this before proceeding with WACC.
Conclusion
Calculating WACC in Mero Share is a simple three-step process — Purchase Source, My Holdings, and My EDIS — but missing the T+1 deadline can be costly. Once you're comfortable with this manual process, keep an eye on CDSC's upcoming Auto EDIS rollout, which aims to automate this entire workflow and remove the closeout penalty risk altogether.
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