Despite strong opposition from investors, Nepal Stock Exchange (NEPSE) has made it clear that it will not change the rule of calculating the market index and closing prices based on the last 15-minute average.
In a press release on Bhadra 13, NEPSE spokesperson Murahari Parajuli explained the calculation method. From 11 am to 3 pm, the index is calculated using every transaction price multiplied by the number of listed shares. After 3 pm, the automated system calculates a weighted average price for each company from trades between 2:45 pm and 3 pm. This average is then used to determine the market index and final prices.
NEPSE stressed that this system is a globally recognized best practice and was implemented from 2078/12/07 under the Securities Board–approved Trading Regulation (Fourth Amendment), 2081.
