Investors in Nepal’s equities market are poised to enjoy a significant new feature: the opportunity to execute buy and sell orders beyond standard trading hours, whenever they wish.
The Securities Board of Nepal (SEBON) has officially sanctioned a revision to the trading regulations suggested by the Nepal Stock Exchange (NEPSE), paving the way for the launch of After Market Orders (AMO).
What does this mean for investors?
Presently, NEPSE functions solely between 11 AM and 3 PM on trading days. With the introduction of AMO, investors will not be confined to this four-hour timeframe. They can log in during the night, early morning, or any time that fits their schedule and place their orders in advance. These orders will be queued and executed automatically when the market reopens on the next trading day, based on priority. No specific time slot for placing these orders has been defined yet.
SEBON’s endorsement is not the final hurdle. The NEPSE Board of Directors must formally approve the revised regulation before AMO goes live. Once that occurs, this feature will be accessible to all investors.
Who gains the most?
This change is especially advantageous for Non-Resident Nepalis (NRNs) residing overseas. Due to differences in time zones, accessing the Nepal market during its active hours has consistently posed a challenge. AMO completely eliminates that obstacle.
Busy professionals working during office hours will also reap the benefits – they can now schedule and submit their trades before work or in the evening at their convenience, without needing to hurry to a screen during trading hours.
The broader picture
By enhancing market accessibility for a broader array of investors, AMO is anticipated to encourage greater participation, achieve improved equilibrium between supply and demand, and boost overall trading volume on NEPSE, marking a move toward a more contemporary and investor-friendly stock market in Nepal.
