Those named in the order are Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma and Sanjeev Kumar. While the order is interim, it is applicable with immediate effect until further orders.
The regulator conducted a suo-motu preliminary examination in the alleged insider trading after taking cognizance of the significant fall in price of shares in the IEX after Central Electricity Regulatory Commission’s (CERC) direction on market coupling on July 23, 2025 after-market hours.
Market coupling involves the centralised matching of bids from various power exchanges to arrive at a uniform market clearing price. This move was aimed at achieving price convergence across different electricity.
The order showed IEX shares falling over 29% on July 24, the day after the CERC order.
India currently has three operational power exchanges — IEX, PXIL, and HPX — which enable transparent and efficient electricity trading among producers, distribution companies, and large consumers.While all three offer similar products such as Day-Ahead Market (DAM), Term-Ahead Market (TAM), Real-Time Market (RTM), and Renewable Energy Certificates (RECs), IEX dominates the market, particularly in the DAM segment, which involves buying and selling power for next-day delivery. IEX’s higher liquidity makes it the primary platform for price discovery in short-term electricity trading.Sebi’s finding revealed that PUT European (PE) options expiring on July 31, 202 surged to 65,212 on July 22, 2025 and after the CERC order became public on July 23, IEX’s share price fell 29.6%, closing at Rs 132.32 on July 24, 2025.
In a 45-page order, Sebi said, “I note that prima facie fraudulent market activity as of Noticees in the instant matter which is executed in a well-coordinated manner in tandem with other entities involved in sharing the UPSI [unpublished price sensitive information] with them to disrupt the orderly functioning of the securities market, negatively affects the integrity of securities markets and is also detrimental to efficient functioning of overall securities market ecosystem.”.
“The thoughtful modus operandi of Noticees herein involved sharing of crucial information relating to regulatory actions that emanated from a regulator and which was bound to have severe impact on the listed securities of IEX. Such actions create an information imbalance amongst investors, leaving them at a disadvantage due to their lack of access to the confidential information held by individuals who can have access to such information owing to their influential contacts. This results in an imperfect market wherein information is not readily and equally accessible to all participants of securities market in and equitable manner which thus exposes innocent investors to possible financial risks which become inevitable,” the order said.
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