Sebi Bars Eight Individuals for Insider Trading in IEX Shares, Orders Return of Rs 173 Crore

Strategic Insights -

Sebi has taken stern action against eight individuals for engaging in insider trading activities in the shares of Indian Energy Exchange (IEX), ordering them to return Rs 173 crore. This is Sebi's biggest order on insider trading to date. The regulator has alleged that confidential information from Central Electricity Regulatory Commission (CERC) meetings was leaked to certain individuals, who then used it to trade in IEX shares.

Key Takeaways:

  • Sebi has barred eight individuals, including Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar, from indulging in insider trading activities in the shares of Indian Energy Exchange (IEX).
  • The regulator has directed the individuals to return Rs 173 crore, the largest order on insider trading to date.
  • Sebi alleged that confidential information from CERC meetings related to policy decisions on market coupling was leaked to certain individuals, who then used it to trade in IEX shares.
  • Market coupling involves the centralised matching of bids from various power exchanges to arrive at a uniform market clearing price.
  • Sebi took cognizance of the significant fall in share price of IEX following an announcement made by CERC on July 23, 2025.
  • The regulator conducted an investigation for the period between July 01, 2025, to August 14, 2025, and also carried out a search and seizure operation at different locations linked with the individuals.
  • Digital evidences were collected during the search and seizure operation.
  • The CERC issued an order on the market coupling of the Real Time Market (RTM) and Day Ahead Market (DAM) of the three power exchanges, including IEX, on July 23.

Statistics:

  • Rs 173 crore: the amount to be returned by the eight individuals barred by Sebi.
  • 8 individuals: the number of individuals barred by Sebi for insider trading in IEX shares.
  • July 23, 2025: the date on which CERC issued an order on market coupling.
  • July 01, 2025, to August 14, 2025: the period during which Sebi conducted its investigation.
  • Three power exchanges: the entities impacted by the CERC's market coupling decision.

Sources:

  • Securities and Exchange Board of India (Sebi)
  • Central Electricity Regulatory Commission (CERC)