The Nepal Stock Exchange (NEPSE) has implemented a new system where the weighted average price of shares traded in the last 15 minutes of the session will be considered the final trading price. The rule takes effect from Thursday, March 20.

NEPSE’s board of directors decided on Wednesday to enforce the fourth amendment to the Securities Trading Regulations, 2075 BS. According to Murahari Parajuli, NEPSE’s Information Officer, the last trading price will now be calculated based on the weighted average of transactions between 2:45 PM and 3:00 PM, replacing the previous system where the final recorded price of a stock was taken as its last trading price.

Parajuli explained that the amendment was introduced to prevent abnormal price fluctuations that often occurred in the final minute of trading. He expressed confidence that adopting international best practices, tailored to Nepal’s market conditions, would help stabilize stock prices.

The Securities Board of Nepal approved this amendment on March 3. Additionally, NEPSE has officially adjusted the last trading period to 2:45 PM–3:00 PM, removing the previous provision that extended trading until 3:05 PM. Clause (c) of sub-regulation (1) of regulation 11 of the Securities Transactions Regulation, which allowed for final trading from 3:00 PM to 3:05 PM, has been removed, as it was deemed impractical and had not been implemented, said Parajuli.

Previously, market hours included initial trading from 10:30 AM to 11:00 AM, bidding and continuous trading from 11:00 AM to 3:00 PM, and final trading from 3:00 PM to 3:05 PM. With the latest amendment, trading operations will now conclude at 3:00 PM.

The headline has been updated for clarity.