NEPSE Implements 15 Percent Circuit Limit

Kathmandu — The Nepal Stock Exchange (NEPSE) has introduced a new circuit limit system from Monday to make the stock market more dynamic and flexible.

As per the amended Securities Trading Regulation 2075, the price of listed companies’ shares can now fluctuate by up to 15 percent in a single trading day. Previously, the limit was 10 percent.

NEPSE stated that the change has been made in line with international practices and the growing participation of investors in the capital market.

Market analysts believe that increasing the price band to 15 percent may lead to higher volatility; however, it is expected to improve price discovery and enhance market liquidity.

The new system is also expected to help investors make quicker decisions and take advantage of market opportunities.

Following the implementation, necessary upgrades have been made to NEPSE’s Trading Management System (TMS). The move is expected to bring Nepal’s capital market closer to global standards and make it more mature and efficient.