IEX shares extend losses on F&O trading ban, potential market coupling implementation by FY25

In the past 12 months, IEX stock has risen 54 percent. In comparison, Nifty rose 31 percent during this period.

Indian Energy Exchange (IEX) stock fell over 4 percent on September 25, extending losses for the second straight session following the government’s reported plans to go ahead with the market coupling proposal.

Market coupling is a model where buy bids and sell bids from all power exchanges in India will be aggregated and matched, to discover a uniform market clearing price (MCP).

Media reports surfaced on Tuesday stating that the Power Ministry has reaffirmed its dedication to the market coupling of power exchanges. The final decision on the implementation timeline will be made by the Central Electricity Regulatory Commission, they said.

The Ministry plans to introduce the new mechanism either by the end of the current fiscal year or at the beginning of FY26.

Market Coupling will mean there will be only one price for the electricity that is to be traded at any point of time through these exchanges. If implemented, power exchanges will be rendered as a platform where only buy and sell bids will be received and power dispatched to the buyer.

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Additionally, IEX, along with Aditya Birla Fashion and Retail, Granules India, Hindustan Copper and Vodafone Idea, has been placed on NSE’s F&O ban list.

When the open interest (OI) on a stock exceeds 95 percent of the market-wide position limits, or MWPL, the futures and options contracts for that stock go into a ban period. Its prohibition is only lifted if the open interest drops to less than 80 percent.

“It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added in its advisory.

At 12:18 pm, IEX shares were trading over 4 percent lower at Rs 202.20 on NSE. The stock has rallied 20 percent so far this year, slightly outperforming Nifty's returns of 19 percent. In the past 12 months, the counter has risen 54 percent. In comparison, Nifty rose 31 percent during this period.

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