IEX share price slides as APTEL takes up market coupling case, CERC yet to clarify withdrawal

The iex share price remained under pressure on Friday as the Electricity Appellate Tribunal (APTEL) heard the Indian Energy Exchange’s challenge to the controversial market coupling framework ordered by the Central Electricity Regulatory Commission (CERC).

The tribunal began hearing the matter at 10.30 am on January 9, a date keenly watched by the market after months of sharp volatility in IEX stock following CERC’s July 2025 directive on day-ahead market (DAM) coupling. During Friday’s session, IEX shares were trading lower by around 2.5–3%, extending recent losses.

The Indian Energy Exchange (IEX) has sought a complete withdrawal of the July order, arguing that it is arbitrary, violates principles of natural justice, and was issued without adequate consultation.

According to the exchange, market coupling would only result in a loss of market share for existing power exchanges without delivering any meaningful efficiency or price discovery benefits.

At an earlier hearing on January 6, CERC’s counsel had told APTEL that the regulator was willing to take instructions from the tribunal on withdrawing the order.

Following requests from counsels for additional time, APTEL scheduled Friday’s hearing, observing that if CERC formally communicates a decision to withdraw the order, the tribunal could close the case the same day.

During the proceedings, APTEL made key observations, stating that market coupling would not be implemented until regulations are framed. The tribunal also noted the lack of clarity on the timeline or scope of such regulations, adding that once regulations are notified, power exchanges would still have the right to challenge them if concerns persist.

Pushing its case further, IEX told the tribunal that CERC does not require a coupling order to frame regulations, and that the existing directive should therefore be set aside.

The tribunal also addressed concerns raised by IEX regarding the sharp fall in its share price after the July order, including references to insider trading norms under the Securities and Exchange Board of India (SEBI).

APTEL said it expects CERC to remain independent and above suspicion, while CERC indicated it would be open to examining any irregularities to prevent a recurrence.

For investors, the outcome of the case remains crucial. Any indication of a withdrawal could ease regulatory overhang and stabilise the iex share price, while prolonged uncertainty may continue to weigh on sentiment.