The index-based circuit breaker method is used at three different levels of the NEPSE index movement: 4%, 5%, and 6%. When these circuit breakers trip, all securities trades come to a halt.
If there is a 4 percent movement in any direction within the first hour of trading, at 12:00 PM, the market will be halted for 20 minutes. If this movement occurs after 12:00 p.m., no trading will be halted at this level, and the market will continue to trade.
If the market moves by more than 5% in either direction before 13:00 PM, the market will be halted for 40 minutes. There will be no trading stop at this level if this movement occurs after 13:00 PM, and the market will continue to trade.
Trading will be halted for the remainder of the day if there is a 6 percent change in either direction. After a 6% movement in the NEPSE, no trading is allowed for the day.
ICRA Nepal and Care Ratings Nepal are two credit rating firms that provide company ratings. In Nepal, 32 merchant banker firms are in operation.