What do you mean by circuit breaker in Nepse ?

A circuit breaker in the context of the Nepal Stock Exchange (Nepse) refers to a mechanism that is put in place to temporarily halt trading in the event of a sharp decline in the market. The purpose of a circuit breaker is to prevent panic selling and allow for cooler heads to prevail during a market downturn.

The Nepal Stock Exchange (Nepse) has implemented a circuit breaker system to curb the volatility of the market. The circuit breaker is triggered when the Nepse index falls by more than 10% within a single trading session. When the circuit breaker is triggered, trading is halted for 15 minutes, during which time market participants can assess the situation and make informed decisions.

If the index falls by more than 15% within the same trading session, trading is halted for 30 minutes. If the index falls by more than 20% trading is halted for the day.This system is in place to prevent a free fall of the market and give investors time to assess their investment and make informed decision.