Kathmandu. The new rule of ‘circuit is going to apply to the ‘Circuit in the stock market. The Securities Board of Nepal (SE BON) has approved the amendment proposal to the Securities Transaction Operation Byelaw, 2075(2075). 

As per the new rule, the NEPSE index will be suspended for 15 minutes if it rises or falls by 5 percent within two hours of the commencement of trading. 

Similarly, if the market that reopened after the first circuit break rises or falls by 8 percent, trading will be completely closed for that day. Earlier, the market was closed for the first break at 4 percent, the second break at 5 percent and 6 percent for the whole day. 

However, now the limit of 4 percent has been increased to 5 percent and the last 6 percent has been increased to 8 percent . 

The Securities Board of India has approved the amendment proposal but it has not been implemented. The board will now send an official letter of the amended bylaws to NEPSE. After receiving the letter, a meeting of the Board of Directors of NEPSE will decide on the implementation of the new system. A senior official of NEPSE said that the new rules will be implemented accordingly.