The Securities and Exchange Board of India (Sebi) has passed one of its biggest orders in recent times in an insider trading case involving shares of the Indian Energy Exchange (IEX). The market regulator has uncovered insider trading transactions worth more than Rs 173 crore following a swift investigation and search operations conducted about a month ago.
According to Sebi’s findings, confidential information from the Central Electricity Regulatory Commission (CERC) meetings—pertaining to policy decisions on market coupling—was leaked to certain individuals who then misused the information to trade in IEX shares. Sebi has directed that a copy of the order be sent to CERC for necessary action.
Who were the alleged insiders who traded?
In an interim order passed by Sebi’s whole-time member, Kamlesh Chandra Varshney, on Wednesday, eight individuals have been restrained from accessing the securities market until further notice. Those named in the order include Bhoovan Singh, his father Amar Jit Singh Soran, his mother Amita Soran, and his aunt Anita. Others barred include Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar.
Sebi has also directed the impounding of illegal gains and instructed that fixed deposit accounts be opened in their names to deposit the impounded amount, with a lien marked in favour of Sebi. The order further stated that no debits shall be made without Sebi’s permission from the bank accounts of those who have been barred, except for transferring funds to the fixed deposit account with a lien marked in favour of the regulator.
According to Sebi, Bhoovan Singh had access to the trading accounts of his father, mother, and other relatives, which he allegedly used to trade in IEX shares. Sebi also noted that Sanjeev Kumar admitted during his statement recording that he had placed the orders in IEX during the examination period using his wife’s trading account. Kumar is the Managing Director and CEO of GNA Energy Ltd., a CERC-regulated entity. Due to his position, he maintained frequent communication with multiple CERC officials, both professionally and personally. It was further revealed that Bhoovan Singh is a majority shareholder of GNA Energy Ltd. and had close personal interactions with several CERC officials.
Who gained how much from Insider tip?
As per Sebi’s order, the eight individuals collectively made illegal gains totalling Rs 173.14 crore through trades in IEX shares. The largest gains were attributed to Bhoovan Singh, who profited Rs 72.03 crore, followed by his father Amar Jit Singh Soran with Rs 22.65 crore, and his mother Amita Soran with Rs 31.59 crore. Anita, the aunt of Bhoovan Singh earned Rs 3.09 crore, while Narender Kumar made Rs 34.53 crore, Bindu Sharma Rs 2.18 crore, and Virender Singh Rs 7.04 crore.
Where was the UPSI accessed from?
As per Sebi’s interim order, Bhoovan Singh and his family members were connected with the family of Yogeita S. Mehra, Chief of the Economic Division at CERC, in their personal capacities. Mehra had attended CERC committee meetings where the unpublished price-sensitive information (UPSI) regarding the market coupling policy was discussed and was actively involved in framing the policy. Though Sebi has not named Mehra or any other CERC official in the notice or barred from accessing the market.
During the search and seizure operation, several documents pertaining to the deliberations of CERC were recovered from devices belonging to Bhoovan Singh. These were found to have been shared by him on a WhatsApp group named ‘OTC’, which included Sanjeev Kumar and Narender Kumar as members.
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How did the investigation begin?
According to Sebi’s findings, on July 23, 2025, CERC issued directions for implementing Market Coupling under the Central Electricity Regulatory Commission (Power Market) Regulations, 2021. The announcement was expected to adversely impact trading volumes on IEX. Consequently, IEX shares fell by 29.58 percent on July 24, 2025, on a close-to-close basis.
Sebi analysed trading data for the period between July 1 and August 14, 2025, and observed a sharp decline in price accompanied by unusual trading volumes in the days preceding the announcement. The suspicious trades prompted Sebi to launch a detailed investigation into possible insider trading activities.
Sebi’s search and the connected links
The regulator’s analysis revealed that several entities had taken large positions in IEX put options—a move contrary to their regular trading behaviour—and collectively earned illicit gains of approximately Rs 173.14 crore. Acting on specific intelligence inputs, Sebi conducted coordinated search and seizure operations between September 18 and 20, 2025, across multiple locations linked to the suspects. During these operations, digital evidence was seized, and statements recorded from the individuals under investigation.
Sebi’s interim order suggests that more persons involved in the case may face action. Sebi whole time member Varshney stated, “interim order is passed against Noticees who are held to be insiders in order to impound the alleged ill-gotten profits made by them from use of UPSI. A detailed investigation by Sebi with respect to insider trading (against these Noticees as well as against other suspects) as well as for other violations is already undergoing which may be completed expeditiously without being influenced by the findings in this order.”
The regulator observed that such conduct creates an information imbalance among investors, leaving the public at a disadvantage due to their lack of access to confidential information. Sebi said this leads to an imperfect and inequitable market, exposing innocent investors to financial risks.
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