Markets regulator SEBI has issued a ban on eight individuals from participating in the securities markets and has ordered the confiscation of ₹173.14 crore in illegal gains made through insider trading involving shares of Indian Energy Exchange Ltd (IEX).
In an interim order, SEBI Whole-Time Member Kamlesh Varshney stated, “I am of the prima facie opinion that the noticees (eight individuals) had access to the unpublished price-sensitive information (UPSI) related to the CERC order, and based on their trading patterns, it can be inferred that their trades as insiders were influenced by this possession.”
The individuals barred by SEBI are Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar.
The case dates back to July 23, 2025, when the Central Electricity Regulatory Commission (CERC) issued directives for implementing Market Coupling under the Central Electricity Regulatory Commission (Power Market) Regulations, 2021. This implementation was anticipated to adversely affect trading volumes on IEX.
Following the announcement, IEX’s share price plummeted by 29.58 percent on July 24, 2025, on a close-to-close basis. The dramatic decline in price, alongside a significant influx of trading activity prior to the announcement, raised red flags regarding potential trading based on prior access to unpublished price-sensitive information.
SEBI conducted a meticulous examination of trading activities and identified specific entities that took substantial positions in IEX Put Option contracts, actions that were markedly inconsistent with their typical trading behavior. Collectively, these entities accrued unlawful gains totaling ₹173.14 crore.
In a further investigation, SEBI reported that these individuals reaped considerable alleged profits by executing trades with exceptional precision and timing, negatively impacting unsuspecting investors who lacked access to knowledge of the impending price drop due to the CERC directive.
To substantiate their findings, SEBI executed a search and seizure operation from September 18 to September 20, 2025, at various locations associated with the individuals involved. This operation revealed significant evidence suggesting that the suspects were receiving confidential information from senior CERC officials related to internal matters, particularly regarding the market coupling order.
As a result, SEBI has mandated the impounding of illegal gains and prohibited these entities from engaging in any securities dealings until the full recovery of the amount. The regulator affirmed, “Furthermore, via the order, the entities have been directed to impound ₹173.14 crore and are restrained from dealing in securities until this amount is recovered.”
Published on October 16, 2025.
