Stocks in NEPSE Can Now Trade in Decimal Price, Fluctuation Range Reduced in Pre-Market Session

The Securities Board of Nepal has made a new provision allowing stocks to be traded in decimal values. This will enable stocks to be traded at decimal stock prices, in contrast to the currently maintained minimum trading tick of Rs. 1.

Stocks can now be traded at 10 paisa higher or lower than the last traded price (LTP). As of now, Rs. 1 was the minimum trading tick for a stock to trade at another price. The regulator has stated that this provision will be implemented in accordance with international practice, and will permit a better reflection of investor sentiment and competitive bidding ecosystem.

Furthermore, the board has also reduced the intraday fluctuation range in the pre-market session to 2%. As of now, companies could gain or lose 5% in a pre-market session. The board believes the flexible and wide range made stocks prone to manipulation in the pre-market session. As such, the range has been brought down.

The regulatory board has stated that the exchange will implement the update after completing the necessary procedures, hence refraining from providing a specific date as of writing.