Kathmandu, April 20 — The Nepal Stock Exchange (NEPSE) has implemented the NEPSE new rules under the new Securities Trading Operation (Amendment 4th) Regulations, which came into effect from today, marking substantial modifications in trading norms and circuit breaker rules.
The most significant change, however, is that of the widening of the daily limit on price volatility in individual stock prices. It is now possible to have price swings as high as 15%, compared to the previous 10%. Such an adjustment will definitely lead to improved price discovery.
In the same manner, the NEPSE pre-opening range has been increased from 2% to 5%, making it easier for more realistic opening prices.
At the general market level, the circuit breaker mechanism has been modified to adopt the following two-tier system to avoid repeated disruptions:
These new regulations will help to make the trading process more vibrant and effective by cutting back on unnecessary stops and enabling investors to take advantage of robust market trends.
Key Highlights:
Market analysts have predicted that these reforms under the Nepse new rules would boost trading and liquidity, particularly during volatile sessions.
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