Surrender Rs 173.14 cr of illegal gains, SEBI orders 8 traders in insider trading case linked to IEX

Mumbai (Maharashtra) [India], October 16 : The Securities and Exchange Board of India (SEBI) has, in an interim order dated October 15, directed several entities involved in insider trading in the scrip of Indian Energy Exchange Ltd. (IEX) to deposit a total of Rs 173.14 crore.

SEBI has also directed the impounding of illegal gains and instructed that fixed deposit accounts be opened in their names to deposit the impounded amount.

It stated "all noticees are directed to open fixed deposit account(s) in their names so as to credit or deposit the aforesaid impounding amount as per the table with a lien marked in favour of SEBI and the amount kept therein shall not be released without permission from SEBI".

The market regulator's action follows a detailed probe into suspicious trades executed in IEX ahead of a key regulatory announcement by the Central Electricity Regulatory Commission (CERC).

As per SEBI, on July 23, 2025, the CERC had issued directions for implementing Market Coupling under the provisions of the Central Electricity Regulatory Commission (Power Market) Regulations, 2021.

The move was expected to adversely impact trading volumes on IEX. Consequently, shares of Indian Energy Exchange Ltd. witnessed a sharp decline of 29.58 per cent on July 24, 2025, on a close-to-close basis.

The regulatory body noted that this steep fall in the share price, coupled with an unusual spike in trading volumes before the CERC announcement, raised suspicions of insider trading.

SEBI's subsequent analysis identified certain entities that had taken significant positions in IEX Put Options contracts contrary to their normal trading behaviour.

These trades generated illicit gains amounting to Rs 173.14 crore.

To gather further evidence, SEBI conducted a search and seizure operation between September 18 and September 20, 2025, at multiple locations linked to the suspected entities.

During these operations, substantial evidence emerged indicating that the traders had been receiving confidential information from high-ranking CERC officials regarding internal developments, particularly related to the market coupling order.

In view of the findings, SEBI issued an interim order directing the implicated 8 entities to impound the total amount of Rs 173.14 crore.

The entities have also been restrained from dealing in securities until the funds are fully impounded.

Furthermore, their bank accounts have been frozen to the extent of the impounded amount, and they have been instructed to open fixed deposit accounts in their names with a lien marked in favour of SEBI.

The regulator stated that the amount kept in these accounts shall not be released without SEBI's permission.

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