Kathmandu. KATHMANDU: Nepal Stock Exchange (Nepse) is to implement a new system in the circuit that has been operating during share trading. The new system will come into effect from April 7.

NEPSE is going to amend the ‘Securities Trading Operation Byelaw-2075’.

As per the new provision, trading will be suspended for 15 minutes if the NEPSE index fluctuates by 5 percent within two hours of continuous trading. Similarly, if the NEPSE index goes up or down by 8 percent at any time of continuous trading, it will stop trading on that day.

So far, trading has been closed if it is more or less than 6 percent. In the current system, 2 percent has been added. Similarly, the Bye-law states that trading shall not be done on that day in such a way that the value of the securities fixed in the initial trading session of any corporate organization is less than or more than 15 percent.

At the same time, the limit of daily share price fluctuations of listed companies has increased. Now it is 10 percent. Now it will be 15 percent. In the pre-open trading session, the price should be reduced or more than 5 percent of the previous day’s closing price.

It is stated that the orders that are not traded in the pre-open should be entered into the regular session and arrangements should be made for the transaction. In the continuous trading session, the order should be entered within the price limit of 3 percent less or more than the price fixed in the pre-open.