Kathmandu – Nepal Stock Exchange (NEPSE) has scrapped the system of calculating the index based on the weighted average price of the last 15 minutes of trading. According to NEPSE spokesperson Murahari Parajuli, the method was tested today and will be continued ahead.

The weighted average calculation method, introduced on March 20, had faced strong criticism from investors, who argued that it was dragging the market down artificially. Under the system, the index was calculated based on the weighted average of all trades executed between 2:45 PM and 3:00 PM.

Investors and brokers had also pointed out several technical errors in the process, noting that NEPSE’s technology was neither automated nor up to standard.