Nepal Stock Exchange


The Nepal Stock Exchange (NEPSE) is the only stock exchange in Nepal. It was established in 1993 and is located in Kathmandu. The NEPSE plays an important role in the Nepali financial markets by providing a platform for trading shares of Nepali public companies.

The Nepal Stock Exchange was established with the objective of spurring economic growth in the country by mobilizing capital and encouraging investments. It provides a regulated and transparent marketplace for trading securities issued by publicly listed companies. Over the years, the NEPSE has seen significant growth in terms of market capitalization, trading volumes, and listed companies.

Key Facts about the Nepal Stock Exchange:

  • The NEPSE Index is the benchmark index that tracks the performance of all listed stocks. It started with a base value of 100 points in 1994.
  • As of September 2022, the NEPSE had a total market capitalization of over 3 trillion Nepali Rupees.
  • There are 219 companies listed on the NEPSE as of September 2022 spanning sectors like banking, manufacturing, hotels, trading, and insurance.
  • The NEPSE follows a rolling settlement system where trades need to settle within 5 working days.
  • Trading on the NEPSE occurs on all weekdays from Sunday to Friday between 11 am to 3 pm.
  • NEPSE moved to fully automated trading in 2006 using the Automated Trading System which enabled electronic trading.

Key Milestones:

  • 1993: NEPSE was established as per the Securities Exchange Act.
  • 1994: NEPSE index introduced and trading began with 11 listed companies.
  • 2000: NEPSE moved to paperless electronic trading.
  • 2006: Fully automated trading system introduced.
  • 2015: NEPSE signed agreement with S&P Dow Jones Indices to launch NEPSE index.
  • 2021: NEPSE market cap exceeded NPR 3 trillion.

Conclusion:

The Nepal Stock Exchange has seen tremendous growth since its inception in terms of market activity, listed companies, trade volumes, and market capitalization. It provides an important avenue for companies to raise capital and offers investors a regulated market for equity investment. With strong economic growth predicted for Nepal, the NEPSE looks well-positioned to play a key role in the country’s capital markets development.