Chapter 2 · Your accounts: bank, Demat, Mero Share, TMS
The four accounts, and why there are four
Bank, Demat, Mero Share and TMS each do one job. Knowing which does what saves you a wasted trip.
Nepal's setup asks for four separate things before you can buy a single share. It looks like bureaucracy. It is actually four different jobs that happen to be done by four different institutions.
| Account | Held with | Its one job |
|---|---|---|
| Bank account | Any commercial bank | Holds your money |
| Demat | A depository participant (usually a bank or broker) | Holds your shares |
| Mero Share | CDSC | Lets you see your shares and apply for IPOs |
| TMS | Your broker | Lets you place buy and sell orders |
Why are the four accounts separate?
Your shares are not held by your broker. They sit in a depository account in your name, and your broker only has permission to trade them. If your broker ceased to exist tomorrow, your shares would still be yours and still be there. That separation is a protection, and it is the reason for the extra steps.
The next four lessons take one account each.
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