SEBI Impounds Rs 173.14 Crore In IEX Insider Trading Case After Alleged Leak Of Sensitive Information By CERC Official

The Securities and Exchange Board of India (SEBI) on Wednesday passed an ex-parte interim order impounding ₹173.14 crore from eight individuals for allegedly engaging in insider trading in the shares of Indian Energy Exchange Limited (IEX).The trades were allegedly based on unpublished price sensitive information (UPSI) leaked from the Central Electricity Regulatory Commission (CERC) by one of its senior most officials, Yogeita S Mehra, Chief of the Economics Division.SEBI's order comes after an investigation revealed that Mehra had shared confidential regulatory information related to an impending CERC order with her former college acquaintance, Bhoovan Singh, who then relayed the information to close family members and associates. These individuals, acting in concert, took aggressive positions in IEX derivatives shortly before the information became public and profited massively from the resulting crash in the company's share price.The 45 page order was issued by SEBI Whole Time Member Kamlesh Varshney, who said the regulator was prima facie satisfied that the trades were not a result of market research or chance but were made with advance knowledge of a price-sensitive regulatory move. “From the aforesaid facts, circumstantial evidence that has come on record and from the totality of the attending facts and circumstances, I am of the prima facie opinion that Noticees had access to the UPSI pertaining to CERC order and based on trading pattern of Noticees also, an irresistible inference can be drawn that trades of Noticees being insiders were influenced by the possession of UPSI and they traded in the contracts of IEX based on this UPSI.” the regulator wrote. On July 23, 2025, after market hours, CERC issued an order announcing the implementation of market coupling, a structural reform aimed at centralising price discovery in electricity trading. The move was expected to reduce IEX's control over price-setting in the Day-Ahead Market (DAM), where it has long held a dominant position. When markets opened the next day, IEX's stock plunged nearly 30%, from ₹169.10 to ₹132.32.SEBI's investigation found that Bhoovan Singh received confidential internal CERC documents, including minutes of high-level meetings, from Mehra via Signal and other encrypted apps. These documents were recovered from his seized digital devices. Bhoovan then forwarded the UPSI to a WhatsApp group named “OTC,” which included other notices Narender Kumar, Sanjeev Kumar, and other family members. One of the key players, Sanjeev Kumar, MD and CEO of GNA Energy, visited the CERC office on July 15, 2025, and even shared a photo in the OTC group showing a livestream of a high-level meeting being viewed from the IT room.SEBI noted that several of the Noticees had never traded in IEX or derivatives before this episode. Accounts belonging to Bhoovan's father (Amar Jit Singh Soran), mother (Amita Soran), and aunt (Anita) were all operated by him during the trades. Derivative trading was enabled for Amita Soran for the first time on July 21, 2025, just two days before the public announcement. The trading activity, which lasted between July 21 and July 28, involved the purchase of large volumes of Put Options anticipating a fall in the stock price. The positions were squared off within days, yielding enormous profits.SEBI listed the ill gotten gains as follows: ₹72.03 crore for Bhoovan Singh, ₹34.53 crore for Narender Kumar, ₹31.59 crore for Amita Soran, ₹22.65 crore for Amar Jit Singh Soran, ₹7.04 crore for Virender Singh, ₹3.09 crore for Anita, and ₹2.18 crore for Bindu Sharma. Investigators also found that ₹26.64 crore of these gains were transferred to entities connected to the Noticees, including Jai Singh and Co., GNA Energy Pvt. Ltd., and JSC Infratech Pvt. Ltd., prompting the regulator to act urgently.“The thoughtful modus operandi of Noticees herein involved sharing of crucial information relating to regulatory actions that emanated from a regulator and which was bound to have severe impact on the listed securities of IEX…..If only a handful of individuals are able to create information asymmetry in the otherwise free and fair securities market, investors would lose faith and the same would result in jeopardizing their interests.” the market regulator said underlying the need for an ex-parte order. Pending final adjudication, SEBI has restrained all eight individuals from accessing the securities market, either directly or indirectly. Their bank and demat accounts have been frozen. They have aslo been directed to deposit the full amount of the impounded profits into fixed deposit accounts with a lien in SEBI's favour. The Noticees must also submit a full inventory of assets within 15 days. They have been given 21 days to respond to the notice.Click here to read/download order

SEBI Impounds Rs 173.14 Crore In IEX Insider Trading Case After Alleged Leak Of Sensitive Information By CERC Official

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