Investors Protest 15-Minute Weighted Average Rule; NEPSE Defends Policy
Investors criticized NEPSE’s 15-minute weighted average pricing method, claiming it distorts charts and sentiment. NEPSE insists it safeguards fairness.
A group of investors staged a protest at the Nepal Stock Exchange (NEPSE) against the application of the weighted average pricing method in the final 15 minutes of daily trading. They argued the rule has disrupted technical charts, undermined market sentiment, and primarily benefits a select group of participants.
According to the investors, the mechanism, introduced in the closing session, distorts fair price discovery and discourages technical analysis. They further alleged the policy was designed to serve certain vested interests at the expense of broader market confidence.
NEPSE, however, defended the rule. The exchange stated that the 15-minute weighted average calculation does not alter the actual trading prices investors agree upon. Rather, it prevents artificial volatility and manipulative practices that seek to influence closing prices. NEPSE emphasized that the policy is designed to safeguard the interests of retail investors and ensure a transparent and orderly market.