New NEPSE Trading Rules 15% Price Limits and Simplified Circuit Breakers Effective Monday

18th April 2026, Kathmandu

In a major move to modernize the Nepalese stock market, the Nepal Stock Exchange (NEPSE) has announced the implementation of the ‘Securities Trading Operations (Fourth Amendment) Bylaws, 2082’.

New NEPSE Trading Rules

Approved by the Securities Board of Nepal (SEBON), these new regulations will officially come into effect this coming Monday, introducing radical changes to price limits and circuit breaker protocols.

1. Expanded Daily Price Limits: 10% to 15%

The most significant change for investors is the expansion of the daily price volatility limit. Previously, the share price of a listed company could only fluctuate by a maximum of 10% in a single trading day.

Under the new bylaws:

• Individual stock prices can now swing by up to 15% in a single session.

• This move aims to make price discovery more realistic and market-driven, allowing stocks to reach their true value faster based on demand and supply.

2. Revised Pre-Open Session Limits

To curb extreme volatility during the market opening, NEPSE has also adjusted the Pre-Open Session (the 15-minute window before the regular market opens).

• The previous price limit of 2% has been increased to 5%.

• This adjustment is expected to provide a smoother transition into regular trading hours by reflecting pre-market sentiment more accurately.

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3. Simplified Circuit Breaker System

NEPSE is moving away from the complex three-tier circuit breaker system (4%, 5%, and 6%) to a more streamlined two-tier approach. This simplification is designed to reduce trading halts and maintain market momentum.

4. Impact on Nepalese Investors

Financial experts suggest that these changes will bring NEPSE closer to international trading standards. By increasing the limits, the market removes “artificial bottlenecks” where stocks get stuck at 10% for days without being able to find their equilibrium.

Key Benefits:

Faster Price Adjustment: Stocks will react more quickly to corporate news and quarterly reports.

Increased Liquidity: Wider limits often encourage higher trading volumes.

Efficient Exit/Entry: Investors will have a better chance to buy or sell at realistic prices during high-volatility events.

Conclusion

While the SEBON and NEPSE initiative marks a leap toward a more flexible and modern market, it also brings increased risk. With a 15% daily limit, the potential for both high gains and significant losses has grown.

Investors are advised to manage their portfolios with increased caution and stay informed on the fundamental health of their investments.

For more: New NEPSE Trading Rules