Blog · Money and Investing in Nepal

Can Nepalis in the US Buy Nepal IPOs and NEPSE Shares? (NRN Rules, 2026)

By Saurav Sharma · 2026-11-02

Short answer: it depends on your passport.

Still a Nepali citizen? You can keep a demat account and MeroShare and apply for IPOs in the general quota, if your accounts and KYC are in order.
US citizen of Nepali origin? You cannot buy on the normal NEPSE market yet. A new foreign currency share rule for NRNs took effect in October 2026, but the systems were not live.
The 10% "foreign employment" IPO quota is for Nepalis abroad with a Nepal labour permit. Students and green card holders in the US usually do not have one.

This is information, not investment or tax advice. I do not recommend any stock or IPO. Rules in Nepal change often. Check with SEBON, CDSC, your bank in Nepal and a US tax preparer before you put money in.

Every few weeks a Nepali group chat in the US lights up with an IPO result. Someone's dad got 10 kitta of a hydropower company. Someone else asks: can I still apply from here? I looked up the current rules so the answer is in one place.

Which group are you in?

Your situation	General IPO quota	10% foreign employment quota	Buy and sell on NEPSE
Nepali citizen living in the US (student, work visa, green card)	Yes, with your own demat, MeroShare and Nepali bank account	Only if you hold a Nepal labour permit	Yes, through a Nepali broker, with your existing accounts
Nepali citizen working abroad on a Nepal labour permit	Yes	Yes, but you must pick one quota per IPO	Yes
US citizen of Nepali origin (NRN card or not)	No open route found	No	Not yet. New foreign currency rule from October 2026, systems pending

If you are still a Nepali citizen

You use the same system as people in Nepal. You need three things:

A bank account in Nepal in your own name. Joint accounts are generally not accepted for linking to demat.
A demat account with a depository participant (most banks' capital arms offer one). You need your citizenship certificate, and the name, date of birth and address must match it exactly.
A MeroShare login and a CRN (C-ASBA registration) from your bank, so you can apply for IPOs online.

New in 2026: national ID number

CDS and Clearing said that from Shrawan 1 (mid-July 2026), a National Identity Number is mandatory to open a new demat account. Updating KYC on an older account also needs it. If you do not have your NID yet, sort that out on your next trip home.

Costs

Demat account: about Rs 100 to 200 to open, then Rs 100 a year.
MeroShare: Rs 50 a year.
C-ASBA charge: about Rs 5 per IPO application.

At about Rs 152 per dollar (Nepal Rastra Bank rate, 2 November 2026), that is a few dollars a year. The real cost of ignoring it is bigger: CDSC freezes demat accounts that miss the annual renewal fee, and a frozen account cannot transfer shares or apply for new issues.

Doing it from the US

Many steps are online, but some depository participants want you in person. A family member in Nepal with a power of attorney can do the in-person steps for you. Ask your bank's demat desk what they accept before you send papers.

The 10% IPO quota for Nepalis abroad

SEBON's rule reserves 10% of IPO shares for Nepalis in foreign employment. It sounds made for us, but read the conditions:

You need a work permit from Nepal's labour ministry for foreign employment. That is the permit migrant workers get for Gulf, Malaysia or Korea jobs.
You also need a passport with a visa stamp and a remittance account at a Nepali bank, funded through official channels.
You can apply under only one quota per IPO. If you use the foreign employment quota, you cannot also apply in the general quota for the same issue.

If you came to the US as a student, on a work visa or on a family green card, you most likely did not get that Nepal labour permit. In that case the general quota is your route.

If you are a US citizen of Nepali origin

Here is where it stands in November 2026:

No normal NEPSE trading yet. In July 2026, SEBON met NRN representatives about the government's budget promise to change the law so non-resident Nepalis can join the secondary market. That promise was still in progress.
A new foreign currency route. The Securities Registration and Issuance (Eighth Amendment) Regulations, 2083, took effect in early October 2026. Eligible companies can sell 10% to 85% of their issued capital to NRNs and Nepali-origin foreign citizens, in foreign currency. Shares cannot be sold at a premium, and the minimum trading unit is 1,000 shares.
Not usable yet. NRB, SEBON, NEPSE and CDS were still building the account and trading systems when the rule was reported.
The first likely issuer is the proposed NRN Nepal Development Fund, promoted by NRNA. The Kathmandu Post reported a proposed capital of Rs 10 billion, with individual overseas investors putting in Rs 100,000 to Rs 100 million.

An NRN card on its own does not open a demat account. The card is valid for 10 years for foreign nationals of Nepali origin, and the Nepal Embassy in Washington asks for a citizenship renunciation certificate when you apply for it.

Getting money back to the US

Nepal's law on non-resident Nepalis says an NRN may repatriate an investment, plus the profit from it, in convertible foreign currency, in the manner the rules prescribe.
The new foreign currency share rule says returns can go abroad in foreign currency, but only "subject to the required system and rules", which were not ready.
For a Nepali citizen with shares bought in rupees, I did not find a simple, published route to send sale money to a US account. Nepal keeps tight limits on foreign currency. Ask your bank in Nepal before you invest money you may want back in dollars.

US reporting basics

This is the part people forget. Two rules matter:

FBAR (FinCEN Form 114). If you are a US person and all your foreign financial accounts added together were above $10,000 at any time in the year, you file an FBAR. Your Nepal bank account and demat account both count toward that total. It is due April 15, with an automatic extension to October 15. You file it with FinCEN, not with your tax return.
FATCA (Form 8938). Filed with your tax return. For people living in the US: single filers above $50,000 on the last day of the year or $75,000 at any time; married filing jointly above $100,000 on the last day or $150,000 at any time. The IRS says foreign stock held in a foreign financial account is covered by reporting the account itself.

Ask a tax preparer who works with immigrants how to report dividends and sale gains from Nepal on your US return.

A simple checklist

Check your citizenship status. That decides everything above.
If you are a Nepali citizen: pay your demat renewal, update KYC with your NID, and confirm your MeroShare login works.
If you are a US citizen: watch for SEBON and NRB notices on the foreign currency share system. Do not hand money to anyone promising a shortcut.
Add up your Nepal accounts in dollars each year. If the total ever passed $10,000, file the FBAR.

Many Nepal IPOs in recent years have been hydropower companies. For the projects behind them, read Nepal hydropower explained and the Nepal megaprojects tracker. Flying home to sort out your KYC in person? See flights from the US to Nepal and the Nepal eSIM and SIM card guide. Planning a bigger trip? Read what a Nepal wedding costs from the US.

Sources

10% foreign employment quota rules: ShareSansar guide, December 2022.
Demat, MeroShare and C-ASBA documents and fees: Merokalam, 2026 guide.
National ID for demat accounts: NEPSE Trading, 7 June 2026. Frozen accounts: ShareSansar on CDSC renewal.
NRN secondary market talks: ShareSansar, 29 July 2026.
Foreign currency share rule for NRNs: ShareSansar, 6 October 2026; Kathmandu Post, 16 August 2026.
NRN card validity: Nepal Laws, 2026; renunciation certificate notice: Embassy of Nepal, Washington.
NRN repatriation clause: Nepal Law Commission.
Exchange rate: Nepal Rastra Bank, 2 November 2026 (USD selling Rs 152.23).
FBAR: IRS FBAR page. Form 8938: IRS comparison of Form 8938 and FBAR.

FAQ

Can I apply for Nepal IPOs while living in the US?

If you still hold Nepali citizenship and keep a demat account, a MeroShare login and a Nepali bank account in your own name, you can apply in the general public quota like anyone in Nepal. If you are a US citizen and gave up Nepali citizenship, there is no open route for you yet.

Can NRNs use the 10% IPO quota for Nepalis abroad?

Usually not. The 10% quota is for Nepalis working abroad with a labour permit from Nepal's government. Applicants need that permit, a passport with a visa stamp and a remittance account. If you came to the US on a student, work or family visa, you most likely do not hold that permit.

Can a US citizen of Nepali origin buy NEPSE shares?

Not on the normal NEPSE market as of November 2026. A rule that took effect in October 2026 lets some companies sell shares in foreign currency to NRNs and foreign citizens of Nepali origin, with a minimum trading unit of 1,000 shares. The account systems for it were still being built.

Can I bring my Nepal share profits back to the US?

Nepal controls foreign exchange closely. Nepali law allows non-resident Nepalis to repatriate an investment and its profit in foreign currency in the prescribed manner, and the new NRN share rule promises foreign currency returns once its systems are ready. For money in a normal rupee account, ask your bank before you invest.

Do I have to report my Nepal demat or bank account to the IRS?

Possibly. You file an FBAR if all your foreign financial accounts together were above $10,000 at any time in the year. Form 8938 has higher limits: for a single filer living in the US, more than $50,000 on the last day of the year or more than $75,000 at any time.