What you actually pay to buy and sell NEPSE shares
The gap between the profit you think you made and the money that reaches your bank is made of four separate charges.
Why your profit is smaller than it looks
Most investors calculate profit as sell price minus buy price. That figure is always optimistic, because it ignores the costs on both sides of the trade and the tax on the gain.
There are four charges to know: broker commission, the SEBON regulatory fee, the DP charge, and capital gains tax. Three apply to both buying and selling; CGT applies only when you sell at a gain.
Individually they look small. On a modest trade with a modest gain, together they can take a noticeable share of what you thought you earned — which is exactly why it is worth knowing them before you sell rather than after.
Broker commission
Brokers charge a commission on the value of each transaction, on a sliding scale — the percentage decreases as the transaction size increases, with a minimum charge for very small trades.
It applies to both the purchase and the sale, so a full round trip pays it twice. Because the rate is banded, small frequent trades pay proportionally more than fewer larger ones.
The practical consequence: frequent small trades carry a real cost, and that cost is easy to overlook when it is deducted automatically.
SEBON fee and DP charge
The SEBON regulatory fee is a small percentage of transaction value that funds the market regulator. It is small enough to ignore mentally and large enough to matter across many trades.
The DP (depository participant) charge is a flat fee per transaction from the institution holding your demat account. Because it is flat rather than percentage-based, it hits small trades hardest — the same rupee amount on a tiny trade is proportionally far larger.
This is the strongest practical argument against very small frequent purchases: the flat charges do not shrink with your trade.
Capital gains tax depends on how long you held
Nepal taxes gains on share sales, and the rate depends on how long you held the shares and whether you are an individual or an institution. Shares held beyond the threshold period are taxed at a lower rate than those sold sooner.
This creates a genuine decision point that many investors miss: a holding approaching the threshold may be worth keeping a few more weeks purely for the tax difference, independent of any view on the price.
Rates and thresholds are set by law and change from time to time. Check the current rate with your broker or a tax adviser before making a decision that depends on it — this article explains the structure, not the current numbers.
The number that actually matters: your true cost
Your real break-even is not the price you paid. It is the price you paid plus every fee you paid on the way in — and if you bought the same scrip several times at different prices, it is the weighted average of all of them including those fees.
This is why buying more of a falling stock feels better than it is: your average cost drops, but the fees paid on each purchase quietly raise the price at which you truly break even.
Work out that figure honestly before deciding whether you are up or down. It changes more decisions than any market opinion.
Common questions
What charges apply when buying shares in Nepal?
Broker commission on a sliding scale, the SEBON regulatory fee, and a flat DP charge from your depository participant. All three apply on purchase, and again on sale.
Is capital gains tax charged on NEPSE share profits?
Yes, on gains when you sell. The rate depends on how long you held the shares and whether you are an individual or an institution — longer holdings are taxed at a lower rate. Confirm current rates with your broker or tax adviser.
Why do small trades cost proportionally more?
Because the DP charge is a flat amount per transaction and the broker commission has a minimum. Neither shrinks with your trade size, so they take a larger share of a small purchase.
What is WACC in share investing?
The weighted average cost of every purchase you made of a scrip, including the fees paid on those purchases. It is your honest break-even price and the figure your profit should be measured against.