SEBI alleges insider trading of ₹173 crore in IEX

Securities and Exchange Board of India (SEBI) banned eight individuals, alleging them of insider trading in the scrips of India Energy Exchange amounting to a ₹173.14 crore, according to an interim order released October 15.

SEBI found that some of the noticees were in possession of regulatory notification regarding market coupling from CERC, which had the potential to move markets, before the information was officially announced. Market coupling, “involves the centralised matching of bids from various power exchanges to arrive at a uniform market clearing price,” according to the interim order. Noticees identified as Bhoovan Singh , Amar Jit Singh Soran, Amita Soran, Anita Narender Kumar, Virender Singh, Bindu Sharma and Sanjeev Kumar.

“I note that there is enough concrete prima facie evidence on record in the form of documentary evidence found on the device of Bhoovan pertaining to the CERC order, minutes of meetings held earlier in this regard shared with him, statements of Noticees admitting that the UPSI was conveyed to them by Bhoovan, meeting of Sanjeev Kumar with O2 (official of CERC) on July 15, 2025 and the fact that they were in constant touch with O1 and O2 who had access to the UPSI from the very nascent stage, to draw a reasonable conclusion that UPSI was shared with Bhoovan by O1,” wrote Whole Time Member Kamlesh C Varshney in the interim order. The scrip of IEX had unnatural volumes after the CERC notification was released.

SEBI accordingly ordered the noticees’ to open fixed deposits in their respective bank accounts to deposit the amount profited through the trading activities. They were further banned from accessing the market until further orders. No debits shall be allowed from the bank or demat accounts. SEBI also sought details of assets within fifteen days from the receipt of the order and the positions taken in the market closed/squared off within 3 months. Some of these directions will cease to exist after the profits are impounded to SEBI and noticees have been given 21 days to to respond to the interim order.