Market dips marginally, SEBON revises circuit breakers, suspends broker

The Nepal Stock Exchange (NEPSE) index edged down by 2.61 points on Tuesday to close at 2,757.40.

The dip in the market was largely attributed to declines across most sector indices, with the exception of banking, hotels and tourism, hydropower, and a few others. Share prices of 157 listed companies fell during the trading session.

Market turnover also saw a notable decrease. After recording transactions worth NRs 10.92 billion on Monday, total trading value dropped to NRs 6.73 billion on Tuesday.

Ngadi Group Power led the market in terms of trading volume, with shares worth NRs 242.2 million exchanged. Reliance Spinning Mills followed closely with NRs 242.1 million, while Ankhu Khola Hydropower Company recorded transactions worth NRs 235.7 million.

Despite the overall decline in the index, 82 companies posted gains, and six companies hit the upper circuit limit.

Those reaching the positive circuit included Bhujung Hydropower, Super Khudi Hydropower, Swet Ganga Hydropower, Ridgeline Energy, Suryakunda Hydropower, and Hotel Forest Inn.

SEBON revises circuit breaker limits

The Securities Board of Nepal (SEBON) have revised the circuit breaker thresholds in the country’s stock market by amending the Securities Trading Regulations. The amendment was approved during a board meeting on Monday. 

Under the updated rules, the upper limit for the circuit breaker has been set at 8%. Trading will now be suspended for the rest of the day only if the market moves up or down by 8%.

The lower threshold has been fixed at 5%.

Previously, a first circuit breaker was triggered if the NEPSE index fluctuated by 4% within the first hour of trading, leading to a 20-minute halt. This threshold has now been increased to 5%.

Similarly, the second circuit breaker, earlier activated at a 5% movement, resulting in a 40-minute suspension, has been revised. Under the new system, if the market moves by 6% after trading resumes, transactions will be halted for the remainder of the day.

The amendment was approved during a board meeting of the Securities Board of Nepal (SEBON) on Monday, following a proposal from the Nepal Stock Exchange.

SEBON suspends Bhrikuti Stock Broking Company over alleged irregularities

On Monday, SEBON also suspended Broker No. 55, Bhrikuti Stock Broking Company, citing multiple regulatory breaches.

The firm is accused of failing to release payments from the sale of Himalayan Reinsurance Company shares and allegedly using those funds to purchase shares for controversial businessman Deepak Bhatt. It also faces charges of defying regulatory instructions and violating prevailing laws.

Along with the suspension, SEBON has issued a notice seeking clarification from the company.