NEPSE raises daily price movement cap to 15%, revises circuit breaker rules

The Nepal Stock Exchange (NEPSE) has raised its daily price movement limits for listed shares, allowing wider fluctuations in a single trading session as part of revised market regulations.

Under the amended Securities Trading Operation Regulations, the daily circuit breaker for individual stocks has been increased from 10% to 15%. This means share prices can now rise or fall by up to 15% during a trading day before trading in the stock is halted for the session. Previously, trading stopped once a stock hit a 10% upper or lower limit.

NEPSE has also revised rules governing index-based trading halts. If the NEPSE index moves up or down by 5% within two hours of the start of continuous trading, trading will now be suspended for 15 minutes. If the index swings by 8% at any point during the day, trading will be suspended for the remainder of the session.

The earlier framework imposed a 20-minute halt if the index moved 4% within one hour, a 40-minute suspension if it moved 5% within two hours, and a full-day closure if it fluctuated by 6%.

The new provisions will take effect from April 20, NEPSE said.