Kathmandu. The Securities Board of Nepal (SEBON) has increased the limit of ‘circuit breaker in the share market. The board is preparing to increase the limit of ‘circuit breaker through the amendment of NEPSE’s transaction by-laws. 

According to the information provided by the board source, the limit of the ‘circuit breaker is going to be increased by two percentage points. 

Currently, if the NEPSE index rises or falls by 4 percent within the first hour of trading, the first circuit break will be imposed. If the market rises or falls by 5 percent for the second time, there is a second circuit break. And the third time, if the market goes up or down by 6 percent, the market closes.

In the meantime, 20 minutes for the first circuit break, 40 minutes for the second circuit break. However, in the new system, the first circuit break will be 4 percent, the second circuit break will be 6 percent and the third circuit break will be 8 percent.

The Stock Market Reform Advisory Task Force, which was formed after the Gen-G movement, also suggested that the limit of the ‘circuit breaker should be increased.At present, the board officials say that the system related to ‘circuit breaker’ has been relaxed according to the same suggestion.