Prices can fluctuate up to 5 percent in the pre-open session.
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Now, orders can be placed for buying and selling in the stock market 24 hours a day. Currently, orders can be placed for share trading only from 11 am to 3 pm. It has been amended to allow trading orders to be placed outside the stock market opening hours. For this, the Securities Trading Operation Regulations 2075 have been amended.
Nepse had amended the regulations in a timely manner and sent them to the Securities Board for approval. The board has passed the regulations with some amendments and Nepse has returned them. In which new provisions have been made, including changing the timing of the circuit breaker, changing the trading limit 10 minutes before the stock market opens (pre-open session). These provisions have not yet been implemented.
The regulations passed by the board should be issued with a decision of the Nepse Board of Directors meeting and a notice/instruction for implementation. Only then will they be implemented. As of Thursday, the NEPSE Board of Directors has not made the decision. New arrangements have also been made, including allowing purchase and sale orders to be placed off-hours (before and after the stock market opens). Although purchase and sale orders can be placed off-hours, the transaction (placement) of that order will only take place during the market opening hours (11 am to 3 pm).
Similarly, now if the NEPSE decreases/increases by 5 percent in the first 2 hours (from 11 am to 1 pm) and by 8 percent in the second two hours (from 1 pm to 3 pm), a circuit breaker will be triggered. In which, if the NEPSE decreases/increases by 5 percent in the first 2 hours, trading will be stopped for 15 minutes, and if it increases by 8 percent in the next two hours, trading will be closed for that day.
Similarly, now in the pre-open session, orders can be placed up to 5 percent higher than the previous price of a company. Currently, such a limit was up to 2 percent. Similarly, when ordering to buy or sell shares of a company, orders can be placed up to 3 percent higher than the previous price. Earlier, such a limit was up to 2 percent.
