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(1), 11(4), and 11B(1) of the SEBI Act, 1992 against eight individuals for alleged insider trading in the scrip of Indian Energy Exchange Limited (IEX). The order follows a suo-motu preliminary examination initiated after a significant fall in IEX share price following a Central Electricity Regulatory Commission (CERC) announcement on July 23, 2025 after market hours. An Investigating Authority was appointed on September 12, 2025, and search and seizure operations were conducted at various locations pursuant to orders from the Hon’ble Special Court.

Key Points

  • 8 entities charged with insider trading in IEX scrip: Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar
  • Investigation period: July 01, 2025 to August 14, 2025
  • Trigger: Significant price fall in IEX shares following CERC announcement on July 23, 2025 after market hours
  • SEBI received complaint alleging insider trading during preliminary examination
  • Investigating Authority appointed on September 12, 2025
  • Search and seizure operations conducted at different locations under Hon’ble Special Court order
  • Order issued under SEBI Act, 1992 and PIT Regulations, 2015
  • Reference: WTM/KV/ISD/ISD-SEC-2/31727/2025-26

Regulatory Changes

No new regulatory changes introduced. This order enforces existing provisions under:

  • SEBI Act, 1992: Sections 11(1), 11(4), and 11B(1)
  • Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

Compliance Requirements

  • Noticees must comply with interim restrictions imposed by SEBI order
  • Investigation continuing with potential additional Noticees to be identified
  • Entities under investigation subject to fund flow analysis and trading pattern scrutiny
  • Market participants reminded of strict enforcement of insider trading prohibitions

Important Dates

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

Impact Assessment

Market Impact: High - The order relates to alleged insider trading preceding a major regulatory announcement by CERC that caused significant price movement in IEX shares. This enforcement action reinforces market integrity and signals SEBI’s vigilance in detecting and prosecuting insider trading.

Regulatory Impact: High - Demonstrates SEBI’s proactive approach including suo-motu examination, swift investigation appointment, and use of search and seizure powers. Sets precedent for enforcement in cases involving regulatory announcements affecting listed companies.

Investor Impact: High - Protects investor interests by addressing alleged unfair trading advantages and maintaining level playing field. The investigation involved analysis of UPSI origin, connections amongst accused, communication patterns, trading activities, profits made, and fund flows.

IEX-Specific Impact: High - Direct impact on IEX as the company whose scrip was allegedly traded on basis of UPSI. The investigation period covers critical weeks around the CERC announcement that materially affected IEX’s stock price.

Impact Justification

Major enforcement action involving insider trading allegations in IEX scrip, with 8 entities charged, search and seizure operations conducted, and investigation revealing price-sensitive information leak prior to CERC announcement causing significant price fall.