NEPSE New Rules Alert: Stock Limits Upgraded to 15% Starting Today; Market to Suspend at 8% Index Change
Mon, Apr 20, 2026 10:41 AM on NEPSE News, Stock Market, Latest,
Starting today, the Nepal Stock Exchange (NEPSE) has officially implemented the "Securities Trading Operation (Fourth Amendment) Regulations," marking a major shift in market dynamics. The most significant change is the expansion of the daily price fluctuation limit for individual stocks, which has been increased from 10% to 15%. This allows listed companies more room for price discovery within a single trading session. Additionally, the price limit for the pre-open session has been widened from 2% to 5% to ensure more realistic opening prices.
The market wide circuit breaker system has also been streamlined into a two-tier mechanism. Under the new rules, trading will be suspended for 15 minutes if the NEPSE index fluctuates by 5% within the first two hours of the session. Furthermore, the threshold for a full market closure has been raised; trading will now only shut down for the entire day if the index hits an 8% fluctuation. These updates are intended to reduce frequent trading halts and provide investors with more trading opportunities during high-momentum periods.
Summary of the New Circuit Breaker Rules
|
Feature |
New Regulatory Provision (Effective Today) |
|
Individual Stock Price Limit |
Daily fluctuation limit increased from 10% to 15%. |
|
Pre-Open Session Limit |
Threshold for price movement increased to 5%. |
|
First Index Halt (5%) |
Trading paused for 15 minutes if the Index moves 5% (within the first 2 hours). |
|
Full Market Closure (8%) |
Trading closed for the rest of the day if the Index moves 8%. |
