The secondary market has been in the upward spiral following the unveiling of the Monetary Policy 2015-16 by Nepal Rastra Bank (NRB) on Thursday. The NRB through the policy has asked the banks and financial institutions to raise their capitals within next two fiscal years. After the announcement of the policy on Thursday, the Nepse had jumped 40.11 points to cross 1,000 points on that day.

As per the new provision, the commercial banks will have to increase their paid up capital to Rs 8 billion from existing Rs 2 billion. Depending on their working areas, development banks will have to increase their capital to Rs 500 million-Rs 2.50 billion from Rs 640 million. Likewise, the finance companies will have to raise their capital to Rs 400 million-Rs 800 million from existing Rs 200 million.

On Sunday, the Nepse imposed circuit breaker twice at 12:16 pm and 12:39 pm before halting the transaction for rest of the day at 1:14 pm.

The circuit breaker system is applicable in three stages of the index movement either way at 3 percent, 4 percent and 5 percent. In case of a 3 percent movement of the index within the first hour of trading, there will be a 15-minute market halt. If the benchmark index fluctuates 4 percent within 2 pm, there will be a trading halt for half an hour. And, in case of a 5 percent movement, regardless of the time, share transactions are halted for rest of the day.