14th September 2025, Kathmandu
The Nepal Stock Exchange (NEPSE) has initiated discussions with key market operators to explore an early resumption of share trading.
NEPSE Aiming to Resume
The Nepal Stock Exchange (NEPSE) has initiated discussions with key market operators to explore an early resumption of share trading. Trading had been suspended until September 18, 2025 (Asoj 2, 2082) due to the widespread political and security unrest that swept across the country. However, as conditions show signs of stabilizing, NEPSE spokesperson Murahari Parajuli confirmed that the exchange is considering lifting the suspension sooner than the previously announced date.
Collaboration with Market Stakeholders
In a concerted effort to ensure a smooth and orderly reopening of the market, NEPSE is holding consultations with a range of critical stakeholders. These discussions are aimed at a coordinated restart, taking into account the readiness and capabilities of all parties involved. The key stakeholders in these discussions include:
CDSC & Clearing Limited: The entity responsible for handling the clearing and settlement of all securities transactions.
Brokerage Firms: The firms that facilitate trades for individual and institutional investors.
Merchant Banks: Financial institutions involved in share issuance, underwriting, and related activities.
The input from these entities is crucial, as they are at the forefront of daily trading operations. Their operational readiness and confidence in the market’s stability will be a deciding factor in NEPSE’s final decision.
Background on the Market Suspension
The temporary halt in trading was implemented as a precautionary measure to safeguard investors and maintain market integrity during a period of intense uncertainty. The widespread protests and demonstrations created an environment of heightened risk, making it difficult for both investors and financial institutions to operate safely and confidently. The initial decision to suspend trading until Asoj 2 was a prudent step to allow authorities to assess the situation and ensure that a safe and secure environment could be re-established.
Implications of an Early Reopening
A decision to reopen the market ahead of schedule would send a strong signal of confidence in the country’s financial environment. It would indicate that the situation has returned to a level of stability that allows for normal business operations. For investors, this would be a welcome development, providing them with the opportunity to manage their portfolios after a prolonged halt in trading. The market is likely to experience higher-than-usual price volatility in the initial days of reopening as investors react to the political developments that occurred during the suspension and adjust their investment strategies accordingly.
Economic Significance
The Nepal Stock Exchange is more than just a trading platform; it is a vital indicator of investor sentiment and a key engine for capital formation. A prolonged closure can have significant negative effects, delaying capital raising for companies and limiting investment opportunities for individuals. A timely resumption of trading would not only help restore confidence but also contribute to the overall economic recovery efforts. It would allow sectors like banking, insurance, and hydropower, which are heavily represented on the exchange, to regain momentum and continue their growth trajectories. The decision to resume operations is not just a logistical one; it is a strategic move to reinforce the resilience and stability of Nepal’s financial markets. For now, market participants are advised to stay vigilant for NEPSE’s official announcement and prepare for potential market fluctuations once trading resumes.
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