Summary:
The Securities and Exchange Board of India (SEBI) has taken decisive action against eight entities involved in insider trading in Indian Energy Exchange (IEX) shares, impounding illegal gains totaling ₹173.14 crore. The regulator’s investigation revealed that the trades were based on unpublished price-sensitive information (UPSI) related to a CERC market coupling order, highlighting SEBI’s continued vigilance in maintaining market integrity.
SEBI’s Action and Entities Involved
On October 15, 2025, SEBI barred eight individuals and entities from participating in the securities market. The entities restrained include:
- Bhoovan Singh
- Amar Jit Singh Soran
- Amita Soran
- Anita
- Narender Kumar
- Virender Singh
- Bindu Sharma
- Sanjeev Kumar
The regulator also impounded ₹173.14 crore, representing gains earned through trading influenced by prior access to confidential market information.
Background of the Case
The case pertains to July 23, 2025, when the Central Electricity Regulatory Commission (CERC) issued directions to implement Market Coupling under the Central Electricity Regulatory Commission (Power Market) Regulations, 2021. This announcement negatively impacted trading volumes on IEX, causing the share price to plunge by 29.58% on July 24, 2025.
SEBI’s investigation suggested that the eight entities had taken significant positions in IEX put option contracts ahead of the announcement, using unpublished price-sensitive information to profit from the subsequent price drop.
Investigation Findings
- SEBI’s probe found evidence of UPSI access, potentially received from senior CERC officials.
- A search and seizure operation conducted between September 18–20, 2025 uncovered documents and records supporting the insider trading allegations.
- SEBI’s interim order concluded that the trading patterns of the entities made it “irresistible to infer that trades were influenced by UPSI possession”, as stated by Whole-Time Member Kamlesh Varshney in a 45-page order.
Regulator’s Directives
- The ₹173.14 crore in illegal gains has been impounded.
- The barred entities cannot deal in securities until the recovery process is complete.
- SEBI has signaled its continued commitment to protecting market integrity and deterring insider trading, emphasizing that misuse of UPSI will attract strict action.
Market Implications
The SEBI action serves as a strong warning to market participants about the consequences of trading based on confidential information. It underscores the importance of transparency and compliance in India’s capital markets.
Investors and traders are advised to remain vigilant and adhere to regulatory norms, especially when handling sensitive information, to avoid punitive action and safeguard market fairness.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.