Shares of Indian Energy Exchange Ltd (IEX) climbed 13% on Tuesday, January 6, as proceedings before the Electricity Appellate Tribunal (APTEL) continued over the market coupling regulations issued by the Central Electricity Regulatory Commission (CERC). The stock movement also came a day after IEX released its business update for the third quarter.
During the hearing, legal counsels sought additional time to respond, following which APTEL fixed January 9 as the next date of hearing. The tribunal indicated that the case could be closed on Friday if CERC communicates a potential decision to withdraw the market coupling order.
CERC told APTEL that it would need to consult internally and seek instructions from its members before taking a call on withdrawing the order. The regulator stated that the objective of the market coupling framework was to make the process more consultative, fair, and transparent, and that discussions with CERC members were required before any final decision.
The tribunal made several observations during the proceedings, noting that it had been informed that the market coupling order may have been framed in a manner benefiting only a few officials. APTEL also remarked that there appeared to be excessive theatrics in the formulation of the coupling regulations, adding that such regulations could have been introduced in a more restrained manner.
APTEL further stressed that CERC was expected to function independently and remain above suspicion. It observed that if any irregularity was found, the tribunal would examine the matter and take appropriate steps to prevent similar issues in the future.
Separately, IEX submitted that the market coupling order was incorrect and should be set aside, irrespective of any findings by the Securities and Exchange Board of India (SEBI) related to insider trading.
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