NEPSE Raises Daily Share Price Limit to 15%, Revises Circuit Breaker System

The Nepal Stock Exchange (NEPSE) has made major amendments to the “Securities Trading Regulations, 2075” to make the stock market more dynamic and active. Under the revised rules, the daily price fluctuation limit for individual company shares has been increased from 10% to 15%. NEPSE spokesperson Murahari Parajuli stated that this change allows any listed company’s shares to rise or fall up to 15% in a single day. Additionally, the price limit for the pre-open session (10:45 AM to 11:00 AM) has been raised to 5%, enabling a more accurate determination of market prices before the regular trading session begins. The circuit breaker system for the overall NEPSE Index has also been revised: a 5% movement in the first two hours of trading will trigger a 15-minute halt, and an 8% fluctuation after reopening will lead to a complete market closure for the day. The previous three-tier system of 4%, 5%, and 6% has been replaced by this new two-tier framework. The Securities Board of Nepal has officially approved the amendments, and NEPSE will announce the implementation date after the technical preparations are completed. While the increased 15% limit may make the market more volatile, analysts believe it will help the market reach fair prices and improve liquidity.