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Odd Lot Orders Drive Doubling of NEPSE Trades; Investors Push for Real-Time Access

NEPSE’s move to display odd lot orders doubled monthly trading, but investors now demand real-time visibility directly on TMS.

Nepalytix
5 min read
Odd Lot Orders Drive Doubling of NEPSE Trades; Investors Push for Real-Time Access

Kathmandu, Aug 27 (Nepalytix) — Nepal Stock Exchange (NEPSE)’s decision to make odd lot buy and sell orders visible from mid-July has led to a doubling of monthly trading volumes, underscoring how small-lot transactions are boosting market activity.

According to NEPSE’s monthly report, a total of 2.1 million shares worth NPR 714.5 million were traded in Shrawan (mid-July to mid-August), up 64% from Ashad’s NPR 435.4 million turnover on 1.14 million shares. Compared to Jestha, when 1.67 million shares worth NPR 331.9 million were traded, Shrawan’s odd lot transactions surged 115%, more than doubling.

Until recently, odd lot orders could be placed but were not visible to other investors. NEPSE now publishes them on its website’s market depth section about one minute after being entered in the Trade Management System (TMS), due to the delay in data flow between TMS and the website.

While the move has been credited with boosting volumes, investors are pushing for real-time visibility directly within TMS. NEPSE officials argue that technical complexity and higher costs make TMS integration challenging, which is why the lower-cost option of publishing on the website was chosen.

Investor groups, however, remain dissatisfied. “Market operators should modernize trading systems, not cite cost barriers,” said investor Santosh Bhattarai. “It is embarrassing for NEPSE to lag on real-time odd lot visibility. They must enable it within TMS as soon as possible.”

Odd lot transactions—defined as share trades below the board lot threshold based on face value—remain excluded from influencing the NEPSE index. For instance, shares with a NPR 10 face value require 100 units to qualify as a board lot, while trades below that are treated as odd lots.

Nepalytix

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Odd Lot Orders Drive Doubling of NEPSE Trades; Investors Push for Real-Time Access | Nepalytix