APTEL Hearing Keeps IEX Stocks Under Pressure

Shares of Indian Energy Exchange (IEX) fell for a second straight day on Tuesday, January 20, extending recent volatility. Investors stayed cautious ahead of a fresh hearing at the Electricity Appellate Tribunal (APTEL) on the market coupling issue. The stock was down nearly another 4% on Tuesday.

Choppy Trading Even on Monday

The pressure came a day after choppy trading on Monday, when the Central Electricity Regulatory Commission’s (CERC) counsel told the APTEL bench that market coupling would not be implemented until proper regulations are framed. That assurance offered limited comfort to the market, with participants wary that the overhang could persist.

Adding to the cautious mood, Power Minister Manohar Lal Khattar said earlier in the day that there was no change in the government’s position on market coupling. His comments reinforced concerns that the issue remains alive, despite procedural back-and-forth at the tribunal.

APTEL is currently hearing IEX’s plea seeking the withdrawal of CERC’s July 2025 directive on day-ahead market coupling.

What Happened in the Previous Hearing?

Previously, the tribunal had sought clarity from CERC on whether it intended to withdraw the July 2025 communication. No final conclusion was reached at that stage. Ahead of that hearing, CERC issued a circular stating that its July 2025 communication should be treated as a direction and not an order.

IEX has maintained that the directive is arbitrary and violates principles of natural justice. The exchange has argued before the tribunal that market coupling would lead to a loss of market share without delivering tangible benefits to power buyers or sellers. According to market participants, the concern is that coupling could dilute the price discovery advantage that currently drives volumes on IEX’s platform.

On January 6, 2026, CERC’s counsel told APTEL that the regulator was willing to take instructions from the tribunal to withdraw the July 2025 directive. That statement briefly raised hopes of a quick resolution. However, after more time was sought, the tribunal scheduled January 9, 2026, as the next hearing date. During that session, APTEL observed that if CERC formally conveyed its intent to withdraw the directive, the matter could be closed on the same day.

Insider Trading Allegations Resurface

The case has been further complicated by serious allegations raised by IEX during earlier hearings. Earlier, it referred to a Securities and Exchange Board of India (SEBI) report alleging that certain CERC officials could be involved in insider trading and made illegal gains of ₹173 crores.

IEX told the tribunal that the market coupling directive, which triggered a 29% drop in its share price in a single session, was part of an alleged insider-trading conspiracy. It also claimed that the directive was tainted and pointed out that the market regulator had identified the author of the market coupling proposal.

While these allegations are yet to be adjudicated, analysts say they have added a reputational layer to what is already a complex regulatory dispute.

Stock Underperforms Broader Market

In the last 12 months, IEX shares have been down about 23%. Brokerage estimates suggest that uncertainty around market coupling has led investors to apply a valuation discount, despite stable power demand and healthy transaction volumes.

For now, traders are likely to closely watch the APTEL proceedings. Any formal move by CERC to withdraw the directive could offer near-term relief. Until then, the stock is likely to remain volatile.

Sources:

CNBC
Economic Times