17th September 2025, Kathmandu
The Nepal Stock Exchange (NEPSE) will resume full trading operations on September 18, 2025 (Ashoj 2, 2082).
NEPSE to Fully Reopen
The decision was made by the Securities Board of Nepal (SEBON) following its board meeting on Tuesday. The market, which had been closed for several weeks due to the Gen Z protests and subsequent nationwide curfews, will reopen under its standard trading rules without any partial restrictions or circuit-breaker adjustments. This full reopening is a significant step toward restoring confidence and stability in the nation’s capital markets.
Reason for the Delay and Market Sentiment
The stock exchange was originally scheduled to reopen a day earlier, on September 17 (Ashoj 1), but the date coincided with a public holiday, prompting the one-day extension to September 18 (Ashoj 2). The prolonged closure was necessary to prevent market instability during the period of political unrest and civil disruptions. The decision to resume full trading without restrictions is a strong signal that the government and market regulators are confident in the country’s economic stability.
Market sentiment is showing early signs of optimism, largely due to the appointment of Rameshwar Khanal as the new Finance Minister. Analysts believe that Khanal’s reputation for fiscal discipline and his market-friendly policies could lead to a potential market rally as pent-up demand is released. This optimism is also fueled by the expectation of increased trading volumes from both institutional and retail investors. However, financial experts caution that investors should be prepared for short-term volatility as the market finds its footing after the extended closure.
Implications for Investors
The full reopening of NEPSE means that all shares of listed companies will be available for unrestricted trading, and standard trading hours and settlement procedures will resume. This provides an opportunity for investors to reposition their portfolios and take advantage of the market’s anticipated recovery. While an initial surge in prices is likely, market participants are advised to focus on the long-term fundamentals of the companies rather than short-term speculation. The government’s broader economic reform agenda, led by Finance Minister Rameshwar Khanal, is expected to encourage domestic investment and attract foreign inflows over time, further strengthening the securities market.
Rameshore Khanal’s Role in Fiscal Discipline
Rameshore Khanal’s appointment as Finance Minister is seen as a key stabilizing factor for the Nepali economy. With over three decades of experience in public service, including a previous tenure as the Finance Secretary, Khanal has a strong track record of promoting fiscal discipline and implementing market-friendly policies. He has been a champion of reforms in government accounting, public procurement, and tax policy, which led to significant improvements in the country’s revenue-to-GDP ratio. During his time as a public servant, he worked to modernize accounting practices and strengthen the revenue base. He also chaired a High-Level Economic Reform Advisory Commission that provided concrete recommendations on tax policy, public institution reform, and measures to attract investment. His appointment brings hope for expert-led financial management that could help Nepal recover from recent political shocks and economic stress. His focus on cutting unnecessary projects and implementing recommendations from reform commissions signals a commitment to a more transparent and efficient financial system. This focus on long-term structural reforms, combined with SEBON’s decision to fully reopen the market, is expected to restore investor confidence and drive sustainable growth in Nepal’s capital markets
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