KATHMANDU, APRIL 18
Nepal Stock Exchange (NEPSE) has implemented the Securities Trading Operation (Fourth Amendment) Regulations, 2082, effective Baisakh 7, 2083, introducing significant changes to order entry procedures, price circuit breakers, and trading halt mechanisms.
The board of directors approved the amendments in a meeting on Baisakh 3, 2083, with the changes applicable to all trading members. Senior Officer Santosh Acharya of NEPSE's Supervision Branch issued the notice directing members to implement the provisions under Regulations 7 and 12 immediately.
Pre-market order queuing
The amendments introduce a pre-market order queuing system under Regulation 7, allowing trading members to enter orders into NEPSE's system before the official trading session begins. Such pre-market orders will be queued in order of priority and automatically entered into the system at the start of trading in accordance with Regulation 12(2). When entering pre-market orders, members must ensure that the order price does not deviate by more than 15 percent above or below the previous trading day's closing price.
During the opening session, orders must remain within five percent above or below the previous day's closing price, with no orders accepted outside this range. During continuous trading, the price band is set at three percent above or below the prevailing price.
Revised circuit breaker thresholds
Amendments to Regulation 17 introduce updated automatic trading halt mechanisms based on NEPSE index movements during continuous trading. Trading will be halted for 15 minutes if the index moves five percent up or down within two hours of continuous trading starting, and the exchange will close for the remainder of the day if the index moves eight percent in either direction at any point during continuous trading.
Previously, a three-tier circuit breaker system was in place: a 4 per cent movement within the first hour triggers a 20-minute halt, a 5 per cent move within two hours triggers a 40-minute halt, and a swing of 6 per cent or more at any point results in a full-day closure.
Additionally, securities of any listed institution whose price moves more than 15 percent above or below the opening session price will not be available for trading that day.