SEBI'S MOST SIGNIFICANT ENFORCEMENT ACTIONS IN RECENT TIMES- SEBI πEIZES ₹πππ ππ« π’π§ πππ (NDIAN ENERGY EXCHANGE LTD ) πNSIDER πRADING πCAM
THE SCAM:
The individuals allegedly traded in IEX put options, profiting from an anticipated sharp fall in the share price.
SOURCE OF INFORMATION (UPSI):
The trades were timed just before the Central Electricity Regulatory Commission (CERC) announced a significant policy decision regarding market coupling. This policy was expected to negatively impact IEX's dominant position, and the stock price of IEX crashed nearly 30% after the public announcement.
On July 24, 2025, IEX’s stock dropped 29.58% in a single day, with massive trading volumes and a surge in put option contracts.
ALLEGED LEAK:
The unpublished price-sensitive information (UPSI) was allegedly leaked from a senior official in the CERC's economics division to the main accused, who then shared it with others in the trading group.
SEBI’s order demands that they surrender or impound ₹ 173.14 crore in alleged illegal gains (i.e. “ill-gotten profits”) associated with their trades in IEX.
INDIVIDUALS BARRED:
SEBI barred eight individuals/entities from accessing the securities market and ordered them to disgorge the alleged illegal gains.
SEBI’S PRIMA FACIE OBSERVATIONS
• Bhoovan singh and sanjeev kumar played central roles in acquiring and disseminating UPSI.
• Multiple noticees traded in IEX securities during the UPSI period, raising suspicion of insider trading.
• Evidence includes digital communications, trading patterns, and familial/business connections.
SEBI'S ACTION:
The ₹173.14 crore in alleged illegal gains has been impounded (seized/frozen) by directing the individuals to deposit the amount into fixed deposit accounts with a lien marked in SEBI's favour.
The individuals are also barred from dealing in securities until further orders.
SUMMING UP
The core of the case is that confidential information from CERC was allegedly leaked to private parties ahead of the public announcement.
The order is interim, meaning further investigation and a final adjudication are pending. It is possible more persons may be implicated as the probe continues.
₹ 173.14 crore is a large sum, especially when tied to one regulatory decision in a relatively niche sector (power / energy exchange).
This may strengthen SEBI’s deterrence against policy leaks and insider trading in regulated sectors.
R V SECKAR FCS, LLB 79047 19295
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