Circuit breaker Nepal Stock Exchange

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The stock exchange has set limits on the price fluctuations in securities transactions to control unnatural fluctuations in the price of securities. This is called circuit breaker in market tollerence. The stock exchange has made such arrangements for market stability, safe and easy trading.

During the first trading of the shares on each day, the shares are traded at 5 percent of the last price of the previous day and only 2 percent for the subsequent transactions. In the event of a debenture, the price may fluctuate at a rate of 0.2 percent per day for the first transaction and up to 0.1 percent for the subsequent transactions.

Similarly, in the first hour after the start of trading, the Nepse index rises or falls by 4 percent for 20 minutes, in the second hour, if it falls or rises by 5 percent, 40 minutes, and in the third hour or so, if it decreases or rises by 6 percent, the rest of the day is suspended.

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