SEBI bars eight entities, impounds ₹173 crore for insider trading in IEX shares

The markets regulator Securities and Exchange Board of India (SEBI) on Wednesday, October 15, barred eight entities from the securities markets and impounded illegal gains of ₹173.14 crore earned through insider trading in Indian Energy Exchange Ltd (IEX) shares.

"I am of the prima facie opinion that the noticees (eight entities) had access to the UPSI pertaining to the CERC order, and based on the trading pattern of the noticees, an irresistible inference can be drawn that their trades, being insiders, were influenced by the possession of UPSI," SEBI Whole-Time Member Kamlesh Varshney said in a 45-page interim order.

The entities restrained by SEBI are Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar.

The case relates to July 23, 2025, when the Central Electricity Regulatory Commission (CERC) issued directions for implementing Market Coupling under the Central Electricity Regulatory Commission (Power Market) Regulations, 2021. The announcement negatively affected trading volumes on IEX, and the share price dropped 29.58% on July 24, 2025, raising suspicions of trading based on unpublished price-sensitive information (UPSI).

SEBI’s probe revealed that the entities had taken significant positions in IEX put option contracts, earning illegal gains of ₹173.14 crore. A search and seizure operation from September 18–20, 2025 found evidence suggesting the suspects received confidential information from senior CERC officials.

The regulator’s interim order directed the impounding of ₹173.14 crore and barred the entities from dealing in securities until the recovery is complete.

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