16th September 2025, Kathmandu
The Nepal Stock Exchange (NEPSE) is poised to resume trading on Wednesday, September 17, 2025 (Ashoj 1, 2082), ending a multi-week suspension triggered by the Gen Z protest–related unrest.
NEPSE to Reopen on Wednesday
While NEPSE has confirmed that it is operationally ready to restart, the final go-ahead is still pending from the Securities Board of Nepal (SEBON), the country’s capital-market regulator. This move is a significant step towards restoring normalcy in Nepal’s financial sector and is eagerly awaited by investors who have been unable to trade for an extended period.
Background on the Market Suspension
The initial decision to halt trading was a direct response to the widespread demonstrations and civil unrest that began on September 9, 2025 (Bhadra 24, 2082). The protests created a volatile and unsafe environment, making it untenable for financial institutions, brokerage firms, and investors to operate. At the directive of SEBON, trading was initially suspended for two days and was later extended, citing Section 90(1)(gha) of the Securities Act, 2063. This legal provision empowers SEBON, in consultation with NEPSE, to close the market for up to five days in extraordinary circumstances to protect market integrity and public safety.
The extended closure, while necessary, had a number of significant impacts on the market and its participants. For individual investors, particularly those who were planning to sell shares to raise cash for the upcoming Dashain festival, the suspension created significant liquidity constraints. Many households and businesses in Nepal rely on liquidating investments to fund festival expenses, and the prolonged closure forced some to seek alternative short-term financing. The lack of trading also disrupted the process of price discovery, which is essential for determining the fair value of securities. This affected portfolio valuations for both retail and institutional investors, and brokerage firms reported a large backlog of pending orders from clients eager to adjust their portfolios once trading resumed. The market closure was a stark reminder of the vulnerability of financial systems to social and political instability.
Reasons for the Reopening and Broader Implications
The decision to prepare for an early reopening is a positive sign that conditions in Kathmandu and other major cities are stabilizing. With security conditions improving, NEPSE is confident that it can resume operations safely and efficiently. The timing is also strategic, as it comes just weeks before Dashain, Nepal’s biggest festival. Reopening the market now will allow investors to access their funds in time for the holidays, alleviating the liquidity problems caused by the suspension. This move is also a powerful signal to both domestic and international investors that Nepal’s capital market is resilient and can withstand challenging circumstances. It reinforces the message that the country is returning to a state of normalcy and that the financial system remains robust.
For investors, the first day of trading is expected to be particularly active. Given the pent-up demand and the backlog of orders, the market may experience high volatility and trading volumes. Investors are advised to monitor official announcements from NEPSE and SEBON closely for the formal reopening notice. They should also prepare their orders in advance and consider setting clear price limits to manage risk in a potentially volatile market. Furthermore, they need to be mindful of the T+2 settlement cycle, which means that the proceeds from a sale will only be credited to their accounts two business days after the transaction. This is an important consideration for those who need funds for Dashain-related expenses.
The reopening of NEPSE is more than just a logistical event; it is a symbol of the country’s economic resilience. It demonstrates that Nepal’s financial regulators are capable of balancing the need for public safety with the imperative of maintaining a functioning economy. The ability of the market to bounce back and resume operations in a timely manner is a critical indicator of the health of the financial system. It showcases the collaborative efforts between the exchange, the regulators, and other market participants to ensure that the capital market continues to play its vital role in capital formation and economic growth. The resumption of trading will not only serve the immediate needs of investors but also help to restore broader confidence in Nepal’s economic future.
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