NEPSE Raises Daily Share Price Limit to 15%, Revises Circuit Breaker System
NEPSE has adjusted its share trading regulations, increasing the daily price movement limit for individual stocks from 10% to 15%. The pre-open session price limit is now set at 5%. The circuit breaker system for the NEPSE index has been modified into two levels: a 15-minute trading halt after a 5% fluctuation and a full-day market closure at 8% movement. These changes, approved by the Securities Board and soon to be implemented by NEPSE, aim to enhance market liquidity and help determine true stock prices. While these measures should support better price discovery, investors should be cautious about potential increased volatility in the market.
- NEPSE boosts daily price limits and updates circuit breakers to improve liquidity but warns of higher market swings.
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NEPSE has adjusted its share trading regulations, increasing the daily price movement limit for individual stocks from 10% to 15%. The pre-open session price limit is now set at 5%. The circuit breaker system for the NEPSE index has been modified into two levels: a 15-minute trading halt after a 5% fluctuation and a full-day market closure at 8% movement. These changes, approved by the Securities Board and soon to be implemented by NEPSE, aim to enhance market liquidity and help determine true stock prices. While these measures should support better price discovery, investors should be cautious about potential increased volatility in the market.
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