From Monday, the share price will decrease by 15 percent, what other rules will be changed?

The new rules will be implemented in Nepal's stock market from Monday 7th Baisakh. The Nepal Stock Exchange (NEPSE) has amended the 'Securities Transactions Regulations, 2075' and is about to implement a new system with the aim of making the market more efficient, transparent and investor-friendly. According to the new rules, the share price of listed companies will now be allowed to decline by a maximum of 15 percent daily, which was earlier limited to 10 percent. This will help in quick price adjustment based on supply and demand in the market. Similarly, the circuit breaker system applicable to NEPSE index has also been modified. Now, if the market rises or falls by 5 percent within the first two hours of the start of trading, the trading will be stopped for 15 minutes. Even after that, if the market rises or falls by 8 percent, it is arranged that the day's trading will be completely closed, which aims to protect investors in extreme fluctuations.

Likewise, in the pre-open session conducted before the market opens, it is arranged that the share price may decrease by a maximum of 5 percent, which is expected to make the initial price determination more balanced and realistic. A one-time order placed during the regular trading period will allow the order to be placed with a share price difference of up to 3 percent, which was only 2 percent previously, making the order matching process more flexible. Also, under the new arrangement, the 'After Market Order' system has been implemented. This will enable investors to place orders for buying and selling shares outside regular trading hours, which is believed to increase market participation. Overall, these reforms aim to increase market liquidity, strengthen risk management and boost investor confidence in the long term, NEPSE said.