Description

SEBI issues ex-parte interim order against 8 entities for alleged insider trading in Indian Energy Exchange Limited (IEX) scrip based on UPSI related to CERC announcement on July 23, 2025.

Summary

SEBI has issued an ex-parte interim order under sub-section (1) of Section 11, sub-section (4) of Section 11, and sub-section (1) of Section 11B of the SEBI Act, 1992 against 8 entities 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 an announcement by the Central Electricity Regulatory Commission (CERC) on July 23, 2025 after-market hours. An Investigating Authority was appointed on September 12, 2025 to examine trading activities during the investigation period (July 01, 2025 to August 14, 2025). Search and seizure operations were also conducted at different locations pursuant to an order from the Hon’ble Special Court.

Key Points

  • Ex-parte interim order issued against 8 individuals: Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar
  • Investigation covers alleged insider trading in IEX scrip based on unpublished price sensitive information (UPSI)
  • Examination initiated after significant price fall in IEX shares following CERC announcement on July 23, 2025
  • Investigating Authority appointed on September 12, 2025
  • Investigation period: July 01, 2025 to August 14, 2025
  • Search and seizure operations conducted at multiple locations with Special Court approval
  • Order examines origin of UPSI, connections amongst noticees, communication of UPSI, trading patterns, profits made, and fund flows
  • Matter involves violations of SEBI Act, 1992 and PIT Regulations, 2015

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action applying existing provisions of:

  • SEBI Act, 1992 (Sections 11, 11(4), and 11B)
  • SEBI (Prohibition of Insider Trading) Regulations, 2015

Compliance Requirements

  • The 8 noticees are subject to interim directions/restrictions as specified in the order
  • Market participants must continue to comply with insider trading prohibition norms under PIT Regulations, 2015
  • Listed companies and insiders must maintain vigilance regarding UPSI handling and trading restrictions
  • Ongoing investigation may result in additional compliance requirements or enforcement actions

Important Dates

  • July 01, 2025: Start of investigation period
  • July 23, 2025: CERC announcement after-market hours that triggered price fall
  • August 14, 2025: End of investigation period
  • September 12, 2025: Investigating Authority appointed
  • October 15, 2025: Ex-parte interim order issued

Impact Assessment

Market Impact: High - The order involves insider trading allegations in a major listed entity (Indian Energy Exchange Limited), which impacts market integrity and investor confidence. The significant price movement following the CERC announcement suggests material market impact.

Regulatory Impact: High - This is a major enforcement action involving 8 entities, search and seizure operations, and ex-parte interim orders under multiple sections of SEBI Act. It demonstrates SEBI’s proactive approach to detecting and acting on insider trading violations.

Investor Impact: High - The case highlights risks of insider trading ahead of price-sensitive regulatory announcements. It reinforces the importance of fair and transparent markets where all investors have equal access to information.

Operational Impact: The investigation examines connection networks, communication channels, trading patterns, profit calculations, and fund flows - providing a comprehensive framework for detecting insider trading activities. The use of search and seizure operations indicates serious nature of violations.

Legal Precedent: The order applies provisions of Section 11, 11(4), and 11B of SEBI Act along with PIT Regulations, reinforcing regulatory powers in insider trading cases involving UPSI related to regulatory announcements.

Impact Justification

Major enforcement action involving insider trading allegations in IEX scrip with 8 entities charged, search and seizure operations conducted, and interim orders issued under SEBI Act sections 11 and 11B