Banking Khabar / Nepal Securities Board to Increase Stock Market ‘Circuit Breaker’ Limits. The Nepal Securities Board (SEBON) is preparing to raise the limits for stock market “circuit breakers” through amendments to the NEPSE trading regulations.
According to board sources, the circuit breaker thresholds will be increased by two percentage points. Under the new rules, the market-wide circuit breaker limit will rise to 8 percent.
Currently, within the first hour of trading, a 4 percent rise or fall in the NEPSE index triggers the first circuit breaker. A 5 percent change triggers the second circuit breaker, and a 6 percent movement leads to market closure. The first circuit breaker currently imposes a 20-minute trading halt, while the second lasts 40 minutes.
Under the revised system, the first circuit breaker will be set at a 4 percent change, the second at 6 percent, and the third at 8 percent.
The change follows recommendations from the Stock Market Reform Suggestion Committee, formed after the Gen-Z movement, which advised increasing circuit breaker limits. SEBON officials say the updated regulations aim to make the market rules more flexible in line with these suggestions.
