NEPSE Live Charts and Market Data

Understanding the Nepal Stock Exchange (NEPSE)

The Nepal Stock Exchange, commonly known as NEPSE, is the sole securities exchange in Nepal. Established in 1994, it operates under the regulation of the Securities Board of Nepal (SEBON) and serves as the primary platform where investors buy and sell shares (often called "kitta" in Nepali) of publicly listed companies. Over the years, NEPSE has grown from a handful of listings to more than 237 companies spread across 13 distinct sub-groups, making it an increasingly important pillar of Nepal's financial system.

Trading Hours and Market Calendar

Unlike Western exchanges that operate Monday through Friday, NEPSE follows Nepal's official work week. Trading sessions run from Sunday to Thursday, with the market open from 11:00 AM to 3:00 PM Nepal Standard Time (NST). Friday and Saturday are non-trading days, along with public holidays declared by the Nepal government. Pre-open sessions begin slightly before the regular session to establish opening prices through a call auction mechanism.

Market Structure and Sectors

Listed companies on NEPSE are categorized into 13 sub-groups: Commercial Banks, Development Banks, Finance Companies, Hydropower, Life Insurance, Non-Life Insurance, Hotels, Manufacturing and Processing, Microfinance, Mutual Funds, Trading, Investment, and Others. The Commercial Banking sector historically carries the largest market capitalization, while Hydropower and Microfinance have seen rapid growth in listings over the past decade.

Key Indices

NEPSE tracks several indices to represent overall market health. The NEPSE Index is the broadest measure, covering all listed stocks weighted by market capitalization. The NEPSE Sensitive Index focuses on Class "A" stocks with higher liquidity and free-float. Additionally, sub-sector indices provide performance benchmarks for each of the 13 groups, and float-weighted indices offer a view adjusted for publicly tradable shares rather than total issued capital.

How to Start Trading

To participate in NEPSE, an investor needs three things: a DMAT (Dematerialized) account through CDSC (Central Depository System and Clearing Limited), a trading account with a licensed broker, and a Customer Registration Number (CRN) obtained through the Mero Share platform. Once these are in place, you can place buy and sell orders through your broker's online trading system (TMS). Settlement follows the T+2 cycle, meaning shares are transferred to your DMAT account two business days after the trade is executed.

Circuit Breakers and Price Limits

NEPSE implements circuit breakers to prevent excessive volatility. Individual stocks have a daily price fluctuation limit of plus or minus 10 percent from the previous closing price. If a stock hits its upper or lower circuit, no further trades can occur beyond that price for the remainder of the session. Market-wide circuit breakers may also halt trading temporarily if the overall index moves beyond defined thresholds within a single session, providing a cooling-off period for investors.