In a major crackdown on insider trading, the Securities and Exchange Board of India (SEBI) has barred eight individuals from the securities market and ordered the impounding of ₹173.14 crore in alleged illegal gains made through trades in Indian Energy Exchange (IEX).
The order follows SEBI’s suo motu investigation into suspicious trading activity ahead of a July 24, 2025, announcement by the Central Electricity Regulatory Commission (CERC) on “market coupling” — a move expected to negatively impact IEX’s business. The regulator noticed a sharp 29.6 per cent fall in IEX’s share price and a surge in trading volumes before the announcement, indicating possible trading based on unpublished price-sensitive information (UPSI).
According to SEBI’s 45-page interim order, the eight individuals — Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar — were linked through family and social connections. The order states that they had access to sensitive information through officials of CERC, including Yogeita S Mehra and Gagan Diwan, who were involved in the regulatory process leading up to the announcement.
SEBI found that these individuals built large positions in IEX put options just before the CERC decision, expecting the stock to fall once the news became public. The regulator said that the trading pattern “speaks volumes about their trading behaviour and the manner in which the whole scheme has been orchestrated.” The pattern was highly concentrated activity during the UPSI period and minimal trading history otherwise.
An analysis of WhatsApp chats and other digital evidence confirmed coordination showed a common link between the CERC officials and the traders — an astrologer advising them on investment timing.
Such actions “jeopardise investors’ interests” and erode confidence in fair markets, said whole-time member Kamlesh Chandra Varshney, emphasising that if only a few individuals exploit privileged information, it undermines the integrity of the securities market.
The regulator has frozen bank and demat accounts of the noticees and directed them to deposit the impounded amount in interest-bearing accounts with a lien in SEBI’s favour. Part of the gains had already been transferred to connected entities, prompting SEBI to act swiftly to prevent further movement of funds.
The trading ban will remain until the full impounding amount is credited, after which the eight individuals may trade again, except in IEX securities. SEBI said further investigation into related entities and officials is underway.
Published on October 16, 2025
