The Securities Board of Nepal (SEBON) is preparing to revise the circuit breaker limits in the Nepal Stock Exchange (NEPSE) through amendments to trading regulations.

According to board sources, the circuit breaker thresholds will be increased by 2 percentage points. Currently, the first circuit breaker is triggered when the index moves by 4% within the first trading hour, followed by the second at 5%, and the third at 6%, which leads to a market halt.

Under the proposed changes, the first circuit breaker will remain at 4%, but the second will be increased to 6% and the third to 8%.

At present, the first circuit break results in a 20-minute halt, while the second leads to a 40-minute pause. These mechanisms are designed to control extreme volatility in the market.

The decision follows recommendations from a stock market reform task force formed after the Gen-Z movement, which suggested relaxing circuit breaker thresholds to allow more natural market movement.

Officials believe that the revised limits will make the market more dynamic while maintaining necessary safeguards.