Nepal’s stock market regulator, the Securities Board of Nepal (SEBON), has started studying the “Nepse last 15 minute rule” and the “MKT option” feature in the trading system after strong protests from investors.
A committee has been formed under SEBON’s supervision department to review these two features. The study will look at their positive and negative impacts on the secondary market.
SEBON chairman Santosh Narayan Shrestha said the committee will work to address investor concerns. He explained that the relevance of the last 15 minutes average rule will be reviewed. Investors have complained that instead of removing the MKT option, the board introduced the last 15 minutes average rule. As a result, the MKT option will also be studied.
Shrestha said SEBON will give necessary instructions to NEPSE, the market’s frontline regulator, once the study is complete. Any features that cause difficulties for investors will not be kept permanently. However, changes will only be made after studying their long-term effects.
In the trading management system (TMS), there are three main order types: CNC, LMT, and MKT. CNC and LMT are for regular orders. The MKT (market order) option allows shares to be bought or sold at the current market price. This means investors can place an order that will be executed immediately at the best available price in the market.
The last 15 minutes average rule is used to set the closing price in Nepal’s stock market. Its goal is to control extreme price movements at the end of the trading session and prevent artificial price manipulation. The closing price is calculated by taking the average price of all trades made in the last 15 minutes of trading. This price is then used to calculate the NEPSE index.
