Insider Trading In IEX Shares Prompts SEBI Action; 8 Entities Barred, ₹173 Crore Impounded

The Securities and Exchange Board of India (SEBI) has cracked down on insider trading activity involving Indian Energy Exchange Ltd (IEX), barring 8 individuals and seizing illegal gains of ₹173.14 crore. The case centres on trades made with prior access to confidential regulatory changes that impacted the company’s shares.

SEBI Identifies Insider Trading Linked to CERC Market Coupling Order

On October 15, 2025, SEBI issued an interim order against 8 individuals for insider trading in IEX shares. The trades occurred just before the Central Electricity Regulatory Commission (CERC) issued directives on July 23, 2025, regarding the implementation of Market Coupling under the Power Market Regulations, 2021. 

This development drastically impacted IEX’s trading volume and led to a sharp 29.58% drop in its share price on July 24, 2025.

Individuals Barred and Amount Impounded

The barred individuals include Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar. SEBI identified that these individuals had prior access to unpublished price-sensitive information (UPSI) and executed trades involving IEX put options to generate unlawful profits of ₹173.14 crore. 

Investigations involved a search and seizure operation conducted between September 18-20, 2025, which uncovered communication indicating receipt of confidential information from senior CERC officials.

Read More:IEX Market Coupling: Tribunal Seeks Revised Petition Adding More Respondents!

SEBI’s Enforcement Measures

Besides impounding the ₹173.14 crore in wrongful gains, SEBI has barred all 8 individuals from buying, selling or otherwise dealing in securities. This action will remain in effect until the full recovery of gains is ensured. The interim order highlights SEBI’s ongoing commitment to ensuring market integrity and deterring insider offences.

Conclusion

SEBI’s swift action against insider trading in IEX shares reinforces the regulator’s commitment to transparency and fair play in the market. By freezing assets and suspending trading activities of those involved, SEBI ensures future deterrence and upholds investor confidence.

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