Kathmandu. The maximum limit for the movement of the company’s share price in the stock market has been increased. <\/p>\n
Nepal Stock Exchange (Nepse) has increased the maximum limit for share price fluctuation by amending its trading bylaws. The Securities Board of Nepal (SEBON) has approved the amendment bylaws and sent them to NEPSE. However, it is yet to be implemented. <\/p>\n
According to the amended bylaws, the company’s share price can be fluctuated up to a maximum of 5 percent from 10:30 am to 10:45 am (10:30 am). Currently, a maximum of 2 percent can be adjusted. <\/p>\n
Similarly, the company’s share price can fluctuate by a maximum of 15 percent from 11:00 am to 3:00 pm. Currently, the maximum limit is 10 percent. <\/p>\n
The amended bylaws have changed the provision of circuit breaker in NEPSE to control the high volatility in the stock market. Currently, NEPSE has three circuit breakers when the market is fluctuating. Now it has been reduced to two circuit breakers. <\/p>\n
In order to control high volatility, the first circuit break will be applied when the market goes up or down by 5 percent in the first hour of trading, and then the second circuit break when the market goes up or down by 8 percent. After the first circuit hits 5 percent, trading will be suspended for 15 minutes and then again if the market hits the 8 percent circuit breaker, trading will be suspended for the rest of the time. <\/p>\n
Currently, in order to control the high volatility in the market, the circuit brake is applied when it rises or falls by 4 percent, then when it rises or decreases by 5 percent, and when it decreases or rises by 6 percent. As per the provision, a circuit breaker at 4 per cent will be used to suspend the transaction for 20 minutes, then at 5 per cent the circuit breaker will be applied and the transaction will be stopped for 40 minutes and then at 6 per cent the circuit breaker will be suspended for the rest of the transaction. <\/p>\n
Another third amendment proposed is an aftermarket order placement. The bylaws are being amended to allow the company to place an order for the purchase and sale of shares even after the trading time. According to the NEPSE official, this arrangement has been made after receiving complaints that Nepalis living abroad are facing inconvenience in trading shares in the country where they live. It is believed that if this system is established, it will further contribute to the development and expansion of the capital market. <\/p>\n
NEPSE Spokesperson Murahari Parajuli said that the amended bylaws have been approved by the Securities Board of Nepal. “NEPSE’s Board of Directors should fix the date for the implementation of the new provisions made through the amended bylaws. It will probably be implemented soon. \u2019<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The maximum limit for the movement of the company’s share price in the stock market has been increased. Nepal Stock Exchange (Nepse) has increased the maximum limit for share price fluctuation by amending its trading bylaws. The Securities Board of Nepal (SEBON) has approved the amendment bylaws and sent them to NEPSE. However, it […]<\/p>\n","protected":false},"author":16,"featured_media":228891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45180],"tags":[],"class_list":["post-294712","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-stockmarket-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/294712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=294712"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/294712\/revisions"}],"predecessor-version":[{"id":294713,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/294712\/revisions\/294713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/228891"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=294712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=294712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=294712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}