Shares of Indian Energy Exchange (IEX) jumped as much as 13 percent after investor sentiment improved on expectations of relief from the Appellate Tribunal for Electricity (APTEL) regarding the CERC’s market coupling regulations.
During the hearing, APTEL made sharp observations on the market coupling order. In a strong remark, the tribunal noted:
“We were told that this (coupling order) was done only for some officers to make money.”
This comment significantly boosted market confidence, as investors interpreted it as a sign that APTEL may stay or reconsider the implementation of market coupling norms that could dilute IEX’s dominant position in power trading.
Why this matters for IEX
- Market coupling, as proposed by CERC, would centralise price discovery and potentially reduce IEX’s volumes and margins
- Any APTEL relief or stay would preserve IEX’s current business model and near-monopoly status
- The sharp rally reflects short covering and fresh buying after prolonged underperformance in the stock
Market view
Analysts said the stock reaction highlights how sensitive IEX valuations are to regulatory clarity. While the long-term outcome remains uncertain, near-term sentiment has turned positive on expectations that the tribunal may curb or delay the implementation of the controversial norms.
Investors, however, are advised to remain cautious, as regulatory risk around power market reforms is not fully behind the company.
