Shares of Indian Energy Exchange declined nearly 4% on Tuesday, January 20, extending losses ahead of a fresh hearing at the Electricity Appellate Tribunal (APTEL) related to the market coupling issue.
The stock remained under pressure after a volatile session on Monday, during which counsel for the Central Electricity Regulatory Commission (CERC) informed the APTEL bench that market coupling would not be implemented until appropriate regulations are framed. However, no formal withdrawal of the July 2025 directive has been communicated so far.
Earlier, Union Power Minister Manohar Lal Khattar stated that there had been no change in the government’s position on market coupling, adding to investor caution around the stock.
Background of the case
APTEL is currently hearing IEX’s plea seeking the withdrawal of CERC’s July 2025 directive on the implementation of market coupling in the day-ahead electricity market. In a previous hearing, the tribunal had asked CERC to clarify whether it intended to withdraw the directive, though no final conclusion was reached.
Ahead of the hearing, CERC issued a circular stating that its July 2025 communication should be treated as a “direction” rather than an “order.” IEX has challenged this stance, arguing that the directive is arbitrary and violates principles of natural justice.
IEX has also maintained that market coupling would lead to a loss of market share without delivering measurable benefits to power market participants.
Regulatory developments
Earlier, on January 6, CERC’s counsel informed APTEL that the regulator was open to taking directions from the tribunal regarding withdrawal of the directive. Following this, counsels sought additional time, and the matter was scheduled for further hearing. APTEL observed that if CERC formally conveyed its intent to withdraw the directive, the case could be closed on the same day.
Separately, during a hearing on November 28, IEX referred to a report by the Securities and Exchange Board of India (SEBI), which allegedly identified insider trading by certain CERC officials, resulting in illegal gains of Rs 173 crore. IEX told the tribunal that the market coupling directive, which triggered a 29% single-day fall in its share price at the time, was linked to the alleged insider trading case.
The exchange further stated that SEBI had identified the author of the market coupling proposal.
Stock performance
The ongoing regulatory uncertainty and the absence of a clear resolution from CERC ahead of the APTEL hearing continued to weigh on investor sentiment, leading to further downside in IEX shares during Tuesday’s session.
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