KATHMANDU: The Nepal Stock Exchange (Nepse) has increased the daily price fluctuation limit for listed companies from 10% to 15%.

The bourse introduced the provision through an amendment to the Securities Trading Operation Regulations. The new rules will come into effect from Monday.

Nepse has also introduced a new two-tier circuit breaker system based on fluctuations in the Nepse index. Under the revised provision, trading will be suspended for 15 minutes if the Nepse index rises or falls by 5% within two hours of continuous trading. If the index then moves by 8% or more at any point during the trading day, all transactions for the day will be suspended.

At present, if the index moves up or down by 4% within the first hour, trading is suspended for 20 minutes. If the index moves up or down by 5% within the first two hours, trading is suspended for 40 minutes. Likewise, if the index moves up or down by 6% at any time, trading is halted for the remainder of the day.

Nepse has also revised the pre-open session rules. During the pre-open session (10:30 am to 10:45 am), price movement limits have been widened to 5% from the existing 2%.