Description
SEBI issues ex-parte interim order against 8 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 and 11B of the SEBI Act, 1992 against 8 entities for alleged insider trading in the scrip of Indian Energy Exchange Limited (IEX). The order was issued following a suo-motu preliminary examination after significant price fall in IEX shares subsequent to a Central Electricity Regulatory Commission (CERC) announcement on July 23, 2025 after-market hours. An Investigating Authority was appointed on September 12, 2025 to investigate trading activities during the period July 01, 2025 to August 14, 2025. Search and seizure operations were conducted at various locations pursuant to an order from the Hon’ble Special Court.
Key Points
- 8 entities named as Noticees: Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar
- Investigation relates to trading in IEX scrip based on alleged prior knowledge of UPSI
- Significant price fall in IEX shares occurred after CERC announcement on July 23, 2025
- SEBI also received a complaint alleging insider trading in the scrip during examination
- Investigation Authority appointed on September 12, 2025
- Investigation period: July 01, 2025 to August 14, 2025
- Search and seizure operations conducted at different locations with Special Court authorization
- Order examines origin of UPSI, connections amongst Noticees, communication of UPSI, trading patterns, profits made, and fund flow analysis
Regulatory Changes
No new regulatory changes introduced. This is an enforcement action under existing SEBI (Prohibition of Insider Trading) Regulations, 2015.
Compliance Requirements
- Named entities are subject to ex-parte interim order restrictions
- Investigation ongoing with requirement for Noticees to cooperate with SEBI proceedings
- Market participants reminded of strict prohibition against insider trading and trading on UPSI
- Entities having access to UPSI must comply with PIT Regulations requirements
Important Dates
- July 01, 2025: Start of investigation period
- July 23, 2025: CERC announcement made after-market hours causing price fall in IEX
- August 14, 2025: End of investigation period
- September 12, 2025: Investigating Authority appointed by SEBI
- October 16, 2025: Ex-parte interim order issued
Impact Assessment
Market Impact: High - Involves a listed exchange (IEX) with significant market presence. The case involves substantial price movement following regulatory announcement, indicating material impact on investor confidence and market integrity.
Regulatory Impact: High - Demonstrates SEBI’s proactive surveillance and enforcement capabilities in detecting and acting on potential insider trading. The use of search and seizure operations indicates seriousness of the matter.
Investor Impact: High - Protection of investor interests through enforcement action against alleged insider trading. Sends strong deterrent message to market participants about consequences of trading on UPSI.
Operational Impact: The order examines connections between multiple entities, fund flows, and communication patterns, indicating a complex investigation involving coordinated trading activities. Market participants should ensure robust internal controls and compliance mechanisms to prevent inadvertent violations of PIT Regulations.
Impact Justification
Major enforcement action involving insider trading allegations against 8 entities with search and seizure operations conducted. Significant market impact due to IEX price fall following CERC announcement.