The stock market of Bhutan is still small looking at the volume of trade of securities.

However, more are realizing the importance of investing in stock market. People are now investing in share market.

The Royal Securities Exchange of Bhutan also introduced Bhutan Stock Exchange Index as a benchmark index of Bhutan stock market. 

How You Can Invest in Bhutan Stock Market

Which are the companies listed under stock exchange of Bhutan? There are 18 companies listed under the Securities Exchange of Bhutan.

We can purchase shares of those companies listed under RSEBL as per our stock analysis, risk tolerance levels and portfolio targets.

Though choices of companies to invest are quite limited in our market, we have an advantage. It’s easy when no. of companies is less. 

Investing in the stock market of Bhutan is quite safe. Our stock market isn’t so volatile. Risk is quite low. 

If you plan to invest in international stock markets, the stock market of Bhutan can be a ground to learn it.

Invest in the Stock Market of Bhutan [Steps]

Picking Your Stock Broker

Broker is a middle institution that buys shares for you or sells your shares in the stock market of Bhutan on your instructions.

You have to pay broker commission on each buy or sell order. There are nine licensed brokers in the stock market of Bhutan:

1. Sershing Securities
2. BNB Securities
3. BOB Securities
4. Lekpay Securities
5. RICB Securities
6. BP Securities
7. Drukyul Securities
8. BDBL Securities
9. Rinson Securities 

When you choose stocks broker in Bhutan, you have to see their fees and their customer service quality.

The day I started investing in Bhutanese companies, Sershing Securities has been my broker.

Opening my trading account to placing share orders, everything is online with them. I didn’t face problem. The fee is 1% of the trade value.

Opening a Trading Account

The first thing to do before buying shares in Bhutan is opening the stock trading account which they call a CD Account. 

Fill up the CD Account opening form and the client agreement form, and then submit to your broker. 

You have to visit brokerage office for this in case of some brokers. I did everything online through an email.

In two days, my CD Account was created. I could immediately invest in the Bhutan share market. 

Stock Trading Mobile App

You can skip this step if you’re someone who prefers doing stock trades over the counter of your stock-broker.

This is only if you don’t like visiting your broker every time you place buy or sell orders of shares in the stock market of Bhutan.

I’m using a mCAMS Mobile App. Trading shares in Bhutan market is more convenient with the app though it’s very basic. 

It removes the hassles of visiting my brokerage just for placing buy or sell orders of shares. 

Placing Your Share Orders

You submitted the forms and also got the trading account. You can now proceed with placing orders for company shares. 

You can visit your broker office to give them your orders.

I do online using RSEBL stock trading App. So before I place orders for shares through the mCaMs app, I email the details to my broker.

The broker tops up the mCAMs balance to meet your order amount. It’s basically a paper account simulation and not a real money.

I can then start ordering shares from this app. I am then literally buying shares and investing in the stock market of Bhutan. 

Settlement of the Trades

If you ordered shares over-the-counter from your broker, you have to visit the office once more to settle the transaction.

Some brokers will ask to deposit the order amount plus a brokerage fee in advance. The broker will inform you after the order gets through. 

If you did order via mCAMs app, it’ll appear as pending in the dashboard until executed.

Once your in-app order gets cleared, you’ll have to settle the transaction with the broker.

If I buy BNBL Shares of 100 at Nu.32.50, I have to transfer Nu.3,250 plus 1% fee of Nu.32.5 to the broker.

The mCAMs App will show all your share holdings. Your broker will send you the official trade confirmation certificate. 

The trade confirmation certificate is like a share certificate – legal proof of your trades.

You must keep it with you. It would be the only document you will have if something happens. 

Good Investing in Stock Market of Bhutan?

Investing is about risk as much as it’s about economic opportunities. We must invest from the perspective of risk and opportunities.

ADB reports that the Market capitalization-to-GDP ratio of Bhutan is 25%. It’s 108% for India and 98.6% for Nepal.

The current capitalization of the stock market of Bhutan is Nu.51 billion. In 2016, it was Nu.22 billion. 

Bhutan is still a developing. It has a scope to grow faster and higher than developed countries. 

So, I am investing in the stock market of Bhutan. There is an opportunity of wealth generation and capital appreciation.

Investing in the stock market is one way of building wealth. Do you also invest in the stock market of Bhutan? 

SUBSCRIBE AND BE A CHEERFUL DONKEY

All my income, savings and investing reports in your Email inbox for FREE

SUBSCRIBE!

You have successful joined Cheerful Donkey Community!