History of NEPSE

Introduction

Nepal Stock Exchange (NEPSE) is only one Stock Exchange of Nepal which is located in Singha Durbar Plaza, Kathmandu. Nepse started its first trading on 13 january, 1994. It is regulated by the Securities Board of Nepal (SEBON). In 1937, Biratnagar Jute Mills Ltd and Nepal Bank Ltd. floated shares for the first time.

Trading System

NEPSE operates on the ‘NEPSE Automated Trading System ‘(NATS), a fully screen based automated trading system, which adopts the principle of an order driven market. Purchase & Sell of Physical as well as dematerialized securities is done through NATS.

Market Timings

Trading on equities takes place on all days of week (except Saturdays and holidays declared by exchange in advance). On Friday only odd lot trading is done.

The market timings of the equities are:- Market Open: - 12:00 PM Market Close: - 15:00 PM

Odd Lot Trading is done on Fridays. For Odd Lot Trading Market Timings are Market Open: - 12:00 PM Market Close: - 13:00 PM

Note:- The exchange may however close the market on days other than schedule holidays or may open the market on days originally declared as holidays. The exchange may also extend, advance or reduce trading hours when it deems fit necessary.

Index-based Circuit Breakers

The index-based circuit breaker system applies at 3 stages of the NEPSE index movement of 3%, 4% and 5%.These circuit breakers when triggered bring about a trading halt in all securities.

In case of 3% movement either way, there would be a market halt for 15 minutes if the movement takes place during first hour of trading i.e. 13:00 PM. In case this movement takes after 13:00 PM there will be no trading halt at this level and market shall continue trading.

In case of 4% movement either way, there would be a market halt for half an hour if the movement takes place before 14:00 PM. In case this movement takes after 14:00 PM there will be no trading halt at this level and market shall continue trading.

In case of 5% movement in either way, trading shall be halted for the remainder of the day.