Shares of Indian Energy Exchange (IEX) declined on Friday as investors reacted to continued uncertainty over proposed reforms in the power trading market. The fall came after the Electricity Appellate Tribunal (APTEL) adjourned the hearing on the market coupling issue to January 19, 2026, extending the wait for regulatory clarity.
The case relates to a challenge filed by IEX against directions issued by the Central Electricity Regulatory Commission (CERC) in July 2025. These directions propose the introduction of market coupling, a mechanism aimed at creating a single, unified price for electricity by pooling bids from all power exchanges. The reform is intended to improve efficiency and transparency in price discovery across the power market.
IEX has opposed the move, arguing that the proposed system could adversely impact competition and undermine its business model. The company has also raised concerns about the process followed by the regulator, stating that it was not given adequate opportunity to present its views before the directive was issued.
During the latest hearing, CERC informed the tribunal that the July communication should be treated as a direction and not a final, binding order. The regulator’s counsel sought additional time to clarify whether the directive could be modified or withdrawn, given the questions raised by the tribunal. Taking note of these submissions, APTEL decided to defer the matter and asked both sides to file further documents before the next hearing.
The tribunal also flagged the need for greater transparency and procedural fairness in regulatory decision-making, indicating that these aspects would be examined in detail when the case resumes.
The postponement led to sharp volatility in IEX shares. The stock moved sharply during the session and slipped as much as nearly 8 per cent at one point, as traders and investors reacted to the absence of a clear timeline on the implementation of market coupling.
Market analysts say the issue is significant for IEX, which currently dominates trading volumes in the day-ahead power market. If market coupling is implemented, price discovery would shift to a centralised mechanism, potentially reducing the influence of individual exchanges and altering competitive dynamics in the sector.
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