New Delhi: The Indian Energy Exchange (IEX) has been rocked by a major insider trading scandal, prompting swift action from the Securities and Exchange Board of India (SEBI). The market regulator has barred eight individuals from participating in the securities market until further notice. Investigations revealed that sensitive information was misused in transactions totaling approximately ₹173 crore.
SEBI’s Directive and the Named Accused
In a Wednesday order, SEBI prohibited Bhuvan Singh, Amar Jeet Singh Soran, Amita Soran, Anita, Narendra Kumar, Virendra Singh, Bindu Sharma, and Sanjeev Kumar from engaging in any market activity until further instructions. SEBI also directed that a copy of the order be shared with the Central Electricity Regulatory Commission (CERC) to facilitate necessary follow-up action.
Investigations revealed that the accused exploited confidential information obtained from CERC meetings to trade in IEX shares. This sensitive data was particularly linked to the Market Coupling Policy, which aims to standardize electricity prices across different power exchanges in India
Raids and Digital Evidence
SEBI observed abnormal trading patterns in IEX shares and, with special court approval, conducted raids at multiple locations connected to the suspects between 18 and 20 September 2025. Digital evidence was collected and statements were recorded. SEBI stated that the entire operation appeared to be well-planned, significantly impacting IEX’s listed shares.
Warning to Investors
SEBI cautioned that insider trading creates information asymmetry, putting ordinary investors at a disadvantage and compromising market fairness.
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Market Coupling Policy and Its Implications
The Market Coupling Policy is designed to integrate bids across India’s power exchanges to ensure uniform pricing, thereby increasing price transparency. CERC announced the policy in July 2025, set to be implemented in the Day-Ahead Market from January 2026.
With this policy, IEX’s independent price-setting mechanism is expected to weaken, requiring the exchange to compete more directly with smaller competitors. Currently, IEX holds approximately 85% of the Day-Ahead Market.
Sharp Decline in IEX Shares
Following the announcement, IEX shares plunged nearly 28% in a single session. Over the next 10 trading sessions, the decline extended to 37%. Several brokerage firms also revised IEX’s target prices downward, amplifying investor unease and market volatility.
SEBI’s Message
Through this action, SEBI sent a clear signal that transparency and fairness in the market are top regulatory priorities. Insider trading will not be tolerated under any circumstances. Experts say the move is critical for maintaining investor confidence in India’s power market and preventing misuse of policy-sensitive information.
Investor Perspective
Market analysts emphasize that investors must remain vigilant in such cases. Insider trading not only affects share prices immediately, but it also undermines the long-term credibility of the market and investor trust.
