The Nepse is currently updating the data of the last five years of all the listed companies. It is said that after the data is ready, it will be tested and only after the complete procedure is ready, it will be conducted.
Nepse has envisioned Nepse 50 as an index based on the share trading of 50 selected companies. The new index will comprise the top 50 companies in Nepse in terms of market capitalization and liquidity and will serve as a barometer for the Nepali stock market. According to Nepse officials, the NEPSE 50 Index will be calculated based on the market capitalization of common shares of 50 listed companies that are eligible for trading and clearing multiplied by the share trading price of that company. The companies which will be included in the Nepse 50 Index must have traded 25 percent or more of the shares to the general public. Similarly, they should have an average daily turnover of Rs 2.5 million or more for the period of six months. They should have an average daily transaction of 5,000 shares or above. The companies should have a minimum of more than 75 percent of trading days in the six months period. According to Nepse officials, the proposed index will have criteria such as maintaining the presence of companies from all sectors in the index ranging from the minimum to the highest amount, turnover share, number of turnovers, and companies with turnover. The Nepse 50 Index can later be traded as a derivative instrument.
