Nepal Stock Exchange (NEPSE) has introduced the After Market Order (AMO) feature on its online Trade Management System (TMS), allowing investors to place buy and sell orders outside the regular trading window of 11 AM to 3 PM.

The new facility is designed to make the trading process more convenient for investors who may not be available during regular market hours. Investors can now prepare their orders in advance rather than having to remain available throughout the trading session to enter a buy or sell request.

Under the AMO system, investors can place limit orders at a price within 15% above or below the previous day's closing price. However, these orders do not immediately enter the active market. When the market is preparing to open on the following trading day, orders that fall within 3% of the early opening price are automatically forwarded to the active trading system.

NEPSE has also built checks into the process before an order is forwarded. For buy orders, the system verifies whether the investor has sufficient funds available in the trading account. For sell orders, it checks whether the investor actually holds the required number of shares in their Demat account.

The AMO facility is also limited to a single trading day. If an order is not executed during that session, it will automatically be cancelled when the market closes. This means investors will need to place a fresh order if they still want to trade the following day.

The new system could particularly benefit full-time employees, business owners and Nepali investors living overseas, who may find it difficult to monitor NEPSE during its regular trading hours. It gives them a way to prepare trades without needing to be continuously available during the market session.

However, the added flexibility also comes with a need for greater attention when placing orders. Investors should carefully check their selected price, quantity and order details before submitting an AMO, particularly because modifying or cancelling an order after submission may not be as straightforward as placing a regular intraday order.