SEBON proposes new benchmark index based on tradable shares

The Securities Board of Nepal (SEBON) has proposed introducing a new benchmark index for the share market based only on the price of tradable shares. The board's working paper suggests the new index could be named the NEPSE Benchmark Index, or NBI, though the board notes NEPSE may consult further on the name.

The current NEPSE index will continue to exist as the NEPSE All Equity Index. The present index is calculated based on the total market capitalization of all listed shares.

According to the board, shares held by promoters, the government and those under lock-in add to market capitalization but are not traded daily. Under the proposed method, promoter, government, lock-in and otherwise non-traded shares would be excluded from the calculation.