NEPSE Settlement Explained: T+2, EDIS, and When Your Money Actually Arrives
Updated · 5 min read
Why the shares you bought are not sellable today, what EDIS is and when to do it, when a broker owes you sale proceeds, and what to do when the payout is late.
Matching an order is not the same as owning the shares or holding the cash. NEPSE settles on T+2: the trade date is T, and the exchange of securities for money completes two trading days later, through CDSC and your broker. Every complaint about "my shares are missing" or "my broker has not paid" starts inside that window.
The two-day clock
| Day | Buyer | Seller |
|---|---|---|
| T (trade day) | Order executes; pay the broker | Order executes; complete EDIS |
| T+1 | Broker settles with CDSC | Shares debited from your demat |
| T+2 | Shares credited to demat | Funds settled; broker releases payout |
Only trading days count. A weekend or a public holiday inside the window pushes everything out, which is why a Wednesday sale can feel like it takes a week.
EDIS is your job, not the broker's
After selling, you must authorise the transfer of the sold shares out of your demat: log in to MeroShare, open My EDIS, select the transaction and confirm with your transaction PIN. Do it the same day or early the next day.
Miss it and the settlement fails on your side. The consequences are real: the broker may have to buy the shares in the auction market to complete delivery, and the cost lands on you along with a fine. "Cannot make clearance" errors in TMS are usually a pending EDIS, a mismatch between the selling demat and the account linked to the broker, or shares that are still in the holding period.
Why yesterday's purchase cannot be sold
Bought shares reach your demat on T+2, and only then are they sellable. Nepal has no intraday or same-day selling, so a two-day minimum holding is structural, not a broker restriction. Anything credited from an IPO, rights, bonus or auction is likewise unsellable until it is listed and credited.
When your broker actually owes you
Sale proceeds are due after T+2 settlement, net of commission, SEBON fee, DP charge and capital gains tax, which are withheld at source — see the cost and tax breakdown if the credited amount looks short. Payment goes to the bank account registered with the broker, and brokers differ on whether they push it automatically or wait for a withdrawal request in their portal.
If it is genuinely late:
- Confirm EDIS was completed and that the settlement date has actually passed.
- Check the ledger in your broker's back-office portal for a withdrawal request.
- Escalate in writing to the broker's compliance officer, quoting the contract note number and settlement date. A written record is what any later complaint rests on.
- If unresolved, complain to SEBON with the contract note, the ledger screenshot and the correspondence. Broker licence conditions cover client fund handling.
Settlement and corporate actions
T+2 is also why book closure dates need a three-trading-day buffer: to be on the register for a rights issue or a dividend, the shares must have settled into your demat before the closure date, not merely been bought.
NepsezAI provides information and analysis only. Nothing here is registered investment advice or a recommendation to buy or sell any security.