The first phase of the polls in the land-locked country was successfully held in 32 districts on November 26.
A total of 957 people belonging to different political parties have been arrested on charges of attacking leaders, candidates and cadres, police said.
Of them, 600 are associated with the CPN-Maoist party, a breakaway Maoist faction, they said.
Three Indians and eight Nepalese were detained in Saptari district for their involvement in anti-elections activities, the police said, adding that firearms have also been seized from their possession.
Elaborate security arrangements have been put in place to conduct elections in a free, fair and peaceful manner, the Election Commission said.
In total 4,482 candidates including Prime Minister Sher Bahadur Deuba will be trying their fate in the final phase.
As many as 15,344 polling centres have been set out for more than 12.2 million voters.
According to Chief Election Commissioner Ayodhyee Prasad Yadav, 400 international observers and 45,000 national observers have been monitoring the elections.
Polling will begin at 7 AM and continue till 5 PM.
"Police personnel are committed to ensuring the security of candidates and voters so as to make the elections successful," Nepal Police spokesperson Manoj Neupane said.
"The Nepal Police has deputed booth security squads, mobile teams and security personnel in plain clothes for the purpose of election security," he added.
The elections are being seen as the final step in Nepal's transition to a federal democracy following a decade-long civil war till 2006 that claimed more than 16,000 lives.
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