Kathmandu. The new circuit breaker rule will come into effect from Monday to control the high volatility in the stock market. <\/p>\n
Nepal Stock Exchange (Nepse) is set to implement a new circuit breaker rule from April 20. The arrangement of 3 circuit breakers has been reduced to only 2. <\/p>\n
The Securities Board of Nepal (SEBON) has endorsed the fourth amendment to NEPSE’s transaction bylaws. <\/p>\n
If the market fluctuates by 5 per cent in the first two hours of trading, the first circuit break will be followed by another 8 per cent fluctuation in the second circuit break. After the first 5 percent circuit break, trading will be suspended for 15 minutes. After the second 8 percent break, the rest of the trading will be suspended. <\/p>\n
Earlier, in order to control the high volatility of the market, there was a 4 percent fluctuation, then a 5 percent fluctuation and a 6 percent fluctuation circuit brake in the first hour of trading. 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 suspended for 40 minutes and then at 6 per cent the circuit breaker will be suspended for the rest of the transaction. <\/p>\n
Similarly, NEPSE has increased the maximum limit of share price fluctuation to 5 percent in the pre-open session and up to 15 percent in the regular session. Earlier, the maximum limit for price fluctuation in the pre-open session was 2 percent and in the regular session it was 10 percent. <\/p>\n
Similarly, according to the amended provision, order placement can now be done for the purchase and sale of shares in the aftermarket. The facility of after-market order placement has been added after Nepalis living abroad complained that it was difficult to trade shares in the country of their residence. Experts believe that if this system is established, it will further contribute to the development and expansion of the capital market. <\/p>\n
The facility of after-market order will depend on the broker. Investors will be able to use this facility once this feature is added to the broker’s TMS.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The new circuit breaker rule will come into effect from Monday to control the high volatility in the stock market. Nepal Stock Exchange (Nepse) is set to implement a new circuit breaker rule from April 20. The arrangement of 3 circuit breakers has been reduced to only 2. The Securities Board of Nepal (SEBON) […]<\/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":[45159,45180],"tags":[],"class_list":["post-295897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en","category-stockmarket-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/295897","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=295897"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/295897\/revisions"}],"predecessor-version":[{"id":295898,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/295897\/revisions\/295898"}],"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=295897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=295897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=295897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}