Odd lot trading to be introduced in NEPSE from Magh 23, 2073

Nepal Stock Exchange (NEPSE) is going to introduce odd lot trading starting next trading day i.e. Magh 23, 2073. Now, shareholders can sell and buy less than 10 units of shares. Earlier, except All or None (AON) orders, only those number of shares divisible by 10 were tradable on normal trading days (Sunday to Thursday: 11AM to 3PM). With the new provision, shareholders will be able to sell less than 10 units of shares. NEPSE has also said that those shares traded as odd lot trading will not affect the market price or any index. Odd lot transactions are still subjected to the latest price plus/minus 2 percent. In addition, odd lot transactions from hereon will not cancel other orders. Example: Let’s say a stock “ABC” was traded at Rs 1000. The limits for the next transaction are Rs 1,000 plus/minus 2 percent. So, the next transaction should occur between Rs 980 and Rs 1,020. If an odd transaction (below 10 kitta) occurs at Rs 990, this price/transaction will not affect the price for the next transaction or have any affect on the index. The base price for next transaction is still Rs 1,000 plus/minus 2% (i.e. Rs 980 to Rs 1,020) because the transaction of Rs 990 was an odd lot trade.