Shares of Indian Energy Exchange Ltd (IEX) rose sharply by 13% today during intraday trade as proceedings before the Electricity Appellate Tribunal (APTEL) continued in connection with the market coupling regulations notified by the Central Electricity Regulatory Commission (CERC). The rally also followed the company’s third-quarter business update released a day earlier.
During the hearing, counsels representing the regulator sought additional time, following which APTEL scheduled the next hearing for January 9. The tribunal indicated that the matter could be closed on Friday itself if CERC communicates a potential decision to withdraw the market coupling order.
CERC informed the tribunal that it would need to consult internally and seek instructions from its members on the possible withdrawal of the order. The regulator stated that its intention behind the market coupling framework was to make the process more consultative, fair, and transparent. It added that discussions would be held with CERC members before taking a final call on withdrawing the coupling norms.
The tribunal, however, made strong oral observations during the proceedings. APTEL noted that it had been told the market coupling order was framed in a manner that benefited only a few officers. It further remarked that there appeared to be “a lot of theatrics” involved in the formulation of the coupling regulations, adding that such regulations could have been introduced more discreetly by the regulator.
APTEL also underlined the importance of regulatory independence, stating that CERC was expected to function above suspicion, comparing the standard to being “like Caesar’s wife.” The tribunal observed that if any irregularity was found, it would examine the issue and take necessary action to prevent a recurrence.
Separately, IEX maintained before the tribunal that the market coupling order was flawed and liable to be set aside, irrespective of any findings by the Securities and Exchange Board of India (SEBI) in relation to insider trading allegations.
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