Shares of Indian Energy Exchange (IEX) remained in sharp focus after the exchange made strong submissions before the Electricity Appellate Tribunal (APTEL), challenging the very basis of the market coupling directive issued by the Central Electricity Regulatory Commission (CERC).
“IEX should not be asked to share data”
IEX told the tribunal that it should not be compelled to share any data at this stage, particularly when the market coupling order itself is under challenge. The exchange argued that the data being sought includes private and commercially sensitive information, disclosure of which could harm its competitive position.
According to IEX, asking for such data without a valid and lawful regulatory framework in place is unjustified and premature.
Order allegedly linked to SEBI findings
In a sharp attack on the regulator, IEX submitted that the market coupling order was “passed through a scam” and cannot stand in light of findings by Securities and Exchange Board of India (SEBI) against certain CERC officers.
IEX told APTEL that SEBI had identified illegal gains of Rs 173 crore, allegedly made through short selling before the market coupling order was made public. The exchange argued that this sequence of events indicates that the directive was passed with ulterior motives and is therefore “tainted.”
Allegation of short selling and profit motive
The exchange claimed that short positions were created ahead of the public disclosure of the coupling directive, enabling select entities to profit from the sharp fall in IEX’s stock. According to IEX, this raises serious questions about the intent behind the order and undermines its credibility as a regulatory reform.
IEX reiterated that repeated signalling around market coupling—without regulations—has consistently caused market disruption and benefited traders rather than electricity consumers.
“Order is unconstitutional”
In one of its strongest arguments, IEX told the tribunal that the market coupling directive is unconstitutional. The exchange stated that the order effectively forces it into compulsory integration with rival power exchanges, comparing it to being “forced into a marriage” with competitors.
IEX argued that such a mandate violates its fundamental rights and goes beyond the powers vested in the regulator.
Request to defer hearing if data not pushed
IEX further submitted that if CERC does not insist on seeking data at this stage, the hearing could be deferred to assess whether the regulator actually proceeds with framing proper regulations for market coupling.
The exchange maintained that regulatory reform must follow due process—draft regulations, consultation, and notification—rather than directions issued in isolation.
Case status
The matter relates to IEX’s challenge to CERC’s July 2025 directive on implementing market coupling in the day-ahead market. APTEL is examining whether the order can survive without a formal regulatory framework and whether procedural and legal safeguards were followed.
The tribunal’s observations and next directions are keenly awaited, as the outcome could have significant implications for power market structure, competition among exchanges, and regulatory accountability.
