The Nepal Stock Exchange (NEPSE) has decided to roll back its recently adopted system of determining the last trading price. From Tuesday, September 23, the exchange will again consider the final recorded price of a stock as its closing rate.
On March 20, 2025, NEPSE had introduced a weighted average system, under which the closing price was calculated based on share transactions during the last 15 minutes of trading. At the time, Information Officer Murahari Parajuli said the move was intended to curb abnormal price swings often triggered in the final minute.
But the Securities Board of Nepal (SEBON) has now instructed NEPSE to discontinue the practice. The regulator’s directive, issued on September 20, comes amid growing volatility in the secondary market. The new-old system will resume Tuesday following a technical test on Sunday, September 21. The market will remain shut on Monday for Ghatasthapana, the first day of the Dashain festival.
The order follows a bruising week for investors. On September 18—the first trading day after Gen Z protests toppled the KP Sharma Oli government on September 9—the market plunged 160.33 points, triggering a negative circuit breaker and forcing an early halt to trading. The benchmark index closed 6 percent lower at 2,511.91.
SEBON said its decision to revert to the previous pricing method was aimed at providing immediate relief to investors and calming market sentiment.
Meanwhile, the government has moved to take a deeper look at structural weaknesses in the capital market. On September 19, the Ministry of Finance formed a four-member task force led by Rupesh KC, Acting Executive Director of SEBON. The group has been asked to study distortions and systemic challenges in the market and recommend reforms—along with a concrete action plan to restore investor confidence—within five days.
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