NEPSE has adopted index-based circuit breaker system after replacing point-based circuit breaker system.
The index-based circuit breaker system applies at 3 stages of the NEPSE index movement of 3%, 4% and 5%. These circuit breakers when triggered bring about a trading halt in all equity.
- In case of 3% movement either way, there would be a market halt for 15 minutes if the movement takes place during first hour of trading i.e. 13:00 hours. In case this movement takes after 13:00 hours, there will be no trading halt at this level and market shall continue trading.
- In case of 4% movement either way, there would be a market halt for half an hour if the movement takes place before 14:00 hours. In case this movement takes after 14:00 hours, there will be no trading halt at this level and market shall continue trading.
- In case of 5% movement either way, trading shall be halted for the remainder of the day.
