SEBON approves new rule to curb manipulation in stock trading

KATHMANDU, MARCH 5: The Nepal Securities Board (SEBON) is set to implement a new provision to curb manipulation in share trading. Under this rule, the Nepal Stock Exchange (NEPSE) will determine the next day's opening price based on the weighted average of the final 15 minutes of trading before market closure.

According to SEBON spokesperson Niranjaya Ghimire, the board of directors has already approved this provision and forwarded it to NEPSE for implementation. He stated that the measure aims to prevent market manipulation by ensuring the opening price reflects recent trading activity rather than last-minute fluctuations.

NEPSE had proposed amending its regulations to adopt this pricing method, replacing the existing system where the closing price determines the following day's opening price. With SEBON's approval, NEPSE will now decide when to enforce the rule.

NEPSE spokesperson Murahari Parajuli confirmed that the regulation is in its final stages, with implementation awaiting a formal decision by NEPSE’s board. He noted that the new system is designed to prevent last-minute trading manipulations that artificially inflate the next day's opening price.

The new rule is expected to come into effect within 12 to 15 days, following testing in the Trading Management System (TMS). Regulators and investors anticipate that this measure will help ensure greater market stability and transparency.