Growing Attraction and Participation in the Capital Market

In recent times, the stock market has seen a significant increase in interest, with many new investors stepping into the scene. Notably, women’s participation in the stock market has also been on the rise. Be it in the primary or secondary market, women are increasingly engaging in stock market activities.

The involvement of women is not limited to trading but extends to leadership roles in investor associations and active participation in company general meetings. Women are not only present in these meetings but are also expressing their views and contributing to discussions. Currently, prominent women shareholders, like Nirupa Gupta, are making their voices heard, and stakeholders anticipate a further increase in women's participation in the future.

The stock market has become an additional income source for women. Unlike traditional office jobs requiring a 9-to-5 commitment, stock trading offers the flexibility to work from home after managing household responsibilities. This convenience has especially attracted homemakers to the stock market. While many women are drawn to the primary market, a significant number also show interest in the secondary market.

Applications for initial public offerings (IPOs) have seen a rapid surge, with crowds flocking to participate whenever a company issues shares. The accessibility of online platforms like Mero Share and the Centralized Application Supported by Blocked Amount (C-ASBA) system has made it easier for people to apply for shares, eliminating the need to visit application centers physically.

The introduction of the "10-unit rule," which allows investors to apply for as few as ten shares, has further fueled interest among small-scale investors. However, there is a misconception that every applicant will receive ten shares, which is not always true due to oversubscription. In such cases, shares are allocated through a lottery system.

The Nepalese securities market has witnessed growing participation across various demographics, including students and homemakers. The younger generation's interest in the stock market has widened its scope, particularly in the primary market, where new investors find a lower-risk entry point. With over 65 lakh Demat accounts and 15 lakh IPO applications, the market's appeal continues to expand.

Previously, IPO applications required long queues at collection centers, but advancements like the C-ASBA system have streamlined the process, enabling applications through banks and financial institutions across the country. Online applications via Mero Share have also simplified the process, saving time and effort.

The primary market offers a low-risk investment opportunity, making it suitable for new investors. It also provides a platform for long-term investment. While the secondary market involves higher risks and potential losses, the primary market remains a preferred choice for small and new investors.

Nonetheless, the ultimate goal for primary market investors is to transition to the secondary market. The secondary market drives the stock market, offering opportunities for both gains and losses. Thus, while the primary market continues to attract new investors due to its lower risk, an eventual entry into the secondary market is crucial for long-term engagement and growth in the stock market ecosystem.