IEX Share Price Declines 4% Ahead of APTEL Hearing on Market Coupling Case

Shares of Indian Energy Exchange (IEX) moved lower ahead of a scheduled hearing at the Electricity Appellate Tribunal concerning the market coupling directive issued by the Central Electricity Regulatory Commission. 

The case relates to a July 2025 communication on day-ahead market coupling, which IEX has challenged on procedural and regulatory grounds.

Stock Movement Ahead of the Hearing

Indian Energy Exchange shares declined by nearly 4% on 20 January 2026, trading at ₹131.55 compared with the previous close of ₹137.00. The stock opened at ₹136.50, touched a high of ₹136.99 and a low of ₹131.50 during the session. 

The decline comes as investors await the next hearing at the Electricity Appellate Tribunal scheduled for later in the day.

Background to the Market Coupling Dispute

The matter centres on a July 2025 directive issued by the Central Electricity Regulatory Commission concerning the implementation of market coupling in the day-ahead power market. 

IEX has filed a plea before APTEL seeking withdrawal of this directive, arguing that it was issued without adequate process and clarity on supporting regulations.

In earlier proceedings, the tribunal sought clarification from CERC on whether it intended to withdraw the communication.

During a prior hearing, CERC’s counsel indicated that market coupling would not be implemented until appropriate regulations were established.

Regulatory Developments and Tribunal Proceedings

Ahead of an earlier hearing, CERC released a circular stating that its July 2025 communication should be treated as a ‘direction’ rather than an ‘order’.

 IEX has contended that the directive lacks procedural fairness and could adversely affect its business position without delivering corresponding market benefits.

CERC’s counsel had previously conveyed to the tribunal that the regulator was open to reconsidering the directive based on instructions from the bench. 

Subsequent hearings were scheduled to allow both parties additional time to present their positions.

Allegations Raised by IEX

During prior hearings, IEX also referred to a report by the securities regulator alleging insider trading involving certain CERC officials. The company has claimed that the market coupling directive contributed to a sharp fall in its share price and has questioned the integrity of the decision-making process behind the proposal. 

These allegations remain part of the broader submissions placed before the tribunal.

Market View Going Forward

The outcome of the APTEL hearing is expected to provide further clarity on the status of the market coupling directive. Any decision on withdrawal or continuation of the directive may influence future regulatory steps in the power trading market.

Read More: India To Table Electricity Amendment Bill in Budget Session to Strengthen Power Sector Framework.

Conclusion

The ongoing proceedings before APTEL reflect differing views between IEX and the electricity regulator regarding the proposed market coupling framework. As the tribunal reviews the submissions from both sides, market participants await clarity on regulatory direction and its implications for power exchange operations.

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