Description

SEBI issues ex-parte interim order against eight entities for alleged insider trading in Indian Energy Exchange Limited (IEX) scrip following CERC announcement on July 23, 2025.

Summary

SEBI has issued an ex-parte interim order under Sections 11(1), 11(4) and 11B(1) of the SEBI Act, 1992 against eight entities for alleged insider trading in the scrip of Indian Energy Exchange Limited (IEX). The order follows a suo-motu preliminary examination conducted after significant fall in IEX share price following a CERC announcement on July 23, 2025 after market hours. The investigation period covers July 01, 2025 to August 14, 2025, and includes search and seizure operations pursuant to Special Court order.

Key Points

  • Eight entities named as Noticees: Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar
  • Investigation initiated on September 12, 2025 following reasonable grounds to believe Noticees traded on basis of UPSI
  • Significant price fall in IEX scrip occurred after CERC announcement on July 23, 2025 post-market hours
  • SEBI received complaint alleging insider trading during examination
  • Search and seizure operations conducted at different locations with Special Court authorization
  • Order issued under PIT Regulations, 2015 framework
  • Investigation covers connections amongst Noticees, communication of UPSI, trading activities, profit analysis, and fund flow

Regulatory Changes

No new regulatory changes introduced. This order represents enforcement of existing Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

Compliance Requirements

  • Entities subject to ex-parte interim order must comply with restrictions imposed by SEBI
  • Market participants reminded of strict prohibition on trading based on UPSI under PIT Regulations
  • Enhanced scrutiny of trading patterns around material announcements
  • Compliance with insider trading norms including maintaining connection registers and monitoring suspicious trading patterns

Important Dates

  • July 01, 2025: Start of investigation period
  • July 23, 2025: CERC announcement made after market hours causing significant price fall in IEX scrip
  • August 14, 2025: End of investigation period
  • September 12, 2025: Investigating Authority appointed by SEBI
  • October 16, 2025: Ex-parte interim order issued (circular publication date)

Impact Assessment

Market Impact: High - The order demonstrates SEBI’s proactive approach to detecting and acting against insider trading, particularly in cases involving significant price movements following regulatory announcements. The action against eight connected entities suggests a coordinated trading scheme.

Regulatory Impact: This enforcement action reinforces SEBI’s zero-tolerance approach toward insider trading violations and demonstrates use of enhanced investigation powers including search and seizure operations. It serves as deterrent for market participants.

Investor Impact: Positive for market integrity as swift regulatory action helps maintain confidence in fair trading practices. The case involving IEX, a major exchange platform company, attracts significant market attention.

Operational Impact: Entities named in the order face immediate trading restrictions and potential further penalties pending completion of investigation. The case highlights risks of trading around material corporate announcements and regulatory decisions.

Investigation Scope

The preliminary examination and investigation focused on:

  • Origin of UPSI related to CERC announcement
  • Connection and relationship amongst the eight Noticees
  • Communication channels and patterns of UPSI dissemination
  • Trading activities and patterns during investigation period
  • Profit calculations from alleged insider trading
  • Fund flow analysis between connected entities

Order issued under:

  • Section 11(1) of SEBI Act, 1992 (Powers of Board)
  • Section 11(4) of SEBI Act, 1992 (Power to issue directions)
  • Section 11B(1) of SEBI Act, 1992 (Power to issue interim orders)
  • SEBI (Prohibition of Insider Trading) Regulations, 2015

Impact Justification

High-profile insider trading case involving SEBI enforcement action with ex-parte interim order against multiple entities, demonstrating regulatory crackdown on market misconduct in IEX scrip.