The Nepal Stock Exchange, known as NEPSE, is the only stock exchange in Nepal. It brings together buyers and sellers of listed shares, sets the rules of trading, and publishes the prices that everyone sees. The Securities Board of Nepal (SEBON) oversees it. This guide explains how the market works in practice: when it trades, how the index is built, how a trade is completed, and what the price data can and cannot tell you.
When the market trades
Since April 2026, NEPSE has traded from Monday to Friday. Before that it traded from Sunday to Thursday, so people who learned the market under the old pattern need to update their routine. Check the current trading calendar on the exchange's own notices, because the list of days can change, and holidays close the market on the day.
The trading day is a set session with an opening and a closing time. Orders placed outside the session wait until it opens. On Tradzy Markets, every NEPSE page says whether the market is open or closed and when it next trades, so you do not have to count days yourself.
Knowing the session times matters for timing. A share that moves sharply near the close may look different the next morning. A large news item released outside trading hours will move the price only when the session opens. Check the times on the exchange before you plan an order.
What the NEPSE Index measures
The NEPSE Index is a single number that summarises the whole market. It is calculated from the listed shares, weighting each by its market value, so a company with a large market value moves the index more than a small one. When people say "the market went up today", they usually mean the index rose.
Because it is weighted, the index can move a lot because of a few large companies, even if most shares were flat. A rise in the index does not mean most shares rose. To check, look at how many shares advanced and how many declined on the same day. Our guide on how to read a country index explains that check in more detail.
The index is a useful reference point, but it does not describe any one company. Use it for context, then look at the company you are interested in.
How a trade is made
Investors do not trade directly on the exchange. They place orders through a licensed broker, who is a member of the exchange. The order goes into the market, and it is matched with the best opposing order at a price both sides accept.
There are two basic order types. A limit order sets the highest price a buyer will pay or the lowest a seller will accept. A market order takes the best available price immediately. The guide on stock order types covers both in detail.
The exchange also has a daily price band. It stops a share from trading above or below a set range on one session. When a share hits its band, its price can stop moving until the next session, even if buyers or sellers keep trying. Check the current band for any share you trade, because it can decide whether you can sell on a given day.
How a trade settles
A trade is agreed on the day, but it is not complete until the shares and the money change hands. That step is called settlement. In Nepal, settlement moves the shares into the buyer's Demat account and the money to the seller's bank account, through the depository and the clearing system.
Settlement takes a short number of days after the trade. During that time the money may be committed and the shares may not yet be available to sell. Ask your broker for the settlement schedule before you rely on selling a share soon after buying it. This is one of the most common surprises for new investors.
Where prices come from
Prices shown on price sites come from the exchange's own data, or from a data provider that collects it. Two things are worth knowing.
First, the data is usually end-of-day. Each day's figures are the open, high, low and close for that session, and the figures for the day are final only after the session closes. A price shown during the session may not be the final figure.
Second, data sources can differ. Different providers can show slightly different figures for the same day, for example because of how they count the last trades or how they handle a suspended share. When a figure matters to a decision, check it against the exchange's official notice or your broker's statement.
Suspended and restricted shares
Some shares are suspended from trading for a period, for example while the company is handling a major announcement or a regulatory matter. A suspended share cannot be bought or sold until trading resumes. Check the exchange's notices for any share you hold. A suspension can last for a long time, so do not count on being able to sell at a particular date.
What the market is like for an investor
NEPSE is a small market compared with the large exchanges of India, China or the United States. It has fewer listed companies and a smaller number of active investors, so some shares trade thinly. A thin share can move sharply on a small order, and it can be hard to sell a large holding without moving the price against yourself.
Banks, hydropower companies and insurers make up a large part of the listed shares, so the market is closely tied to those sectors. A rule change or a difficult year for one sector can move the whole market. Check the sector mix before you decide how much to put into one area.
A worked example: reading one session
Suppose a share opens at 400, rises to a high of 420 during the session, falls back to a low of 395, and closes at 410. The day's range is 25 (420 minus 395). The close of 410 is above the open of 400, so the candle is positive for the day.
Now suppose the index also rose that day, but only three of ten shares advanced. The index rose because a few large companies rose strongly. In that case the rise is narrower than the headline suggests, and it may not reflect what happened to the shares you hold.
| Measure | Value | What it tells you |
|---|---|---|
| Open | 400 | Where the session started |
| High and low | 420 and 395 | The range traded during the day |
| Close | 410 | The last price of the session |
| Advancers and decliners | 3 up, 7 down | How broad the day's move was |
Common mistakes
Assuming the index describes your share. It describes the market as a weighted whole. Your share can do something very different.
Forgetting the trading calendar. Holidays and the change of trading days mean a planned sale may not happen on the day you expect.
Planning around settlement as if it were instant. Money and shares take a few days to change hands. Plan your cash and your exits with that delay in mind.
Reading a single day as a trend. One session tells you very little. Look at weeks and months, and check the volume.
Key takeaways
NEPSE is the only stock exchange in Nepal, regulated by SEBON. It trades from Monday to Friday since April 2026, on a set session with a daily price band for each share. The NEPSE Index is weighted by market value, so it can rise while most shares fall. A trade settles over a few days, not instantly. Check the exchange's notices, your broker's terms and the actual figures for the company before you act.
This guide is for general information, not financial advice. See the disclaimer.