Sebi Uncovers ₹173 Crore Insider Trading in IEX Shares

The Securities and Exchange Board of India (SEBI) has unearthed one of its largest insider trading cases in recent times, involving shares of the Indian Energy Exchange (IEX) worth over ₹173 crore. Following a swift investigation and extensive search operations last month, SEBI found that confidential information from the Central Electricity Regulatory Commission (CERC) had been leaked to select individuals, who then exploited it to trade in IEX shares. The regulator has directed that a copy of its order be forwarded to CERC for further action.

Individuals Involved

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In an interim order issued by SEBI whole-time member Kamlesh Chandra Varshney on Wednesday, eight individuals were barred from accessing the securities market until further notice. The list includes Bhoovan Singh, his father Amar Jit Singh Soran, his mother Amita Soran, his aunt Anita, and four others—Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar.

SEBI has instructed that all illegal gains be impounded. Fixed deposit accounts will be opened in the names of the barred individuals, with a lien marked in favour of SEBI. No debits can be made from their bank accounts without SEBI’s approval, except for transfers to the designated fixed deposits. Investigations revealed that Bhoovan Singh had used his relatives’ trading accounts to execute trades, while Sanjeev Kumar admitted to placing orders through his wife’s account. Kumar is the Managing Director and CEO of GNA Energy Ltd., a CERC-regulated entity, maintaining frequent contact with CERC officials. Bhoovan Singh, a majority shareholder of GNA Energy Ltd., also had close personal interactions with several CERC officials.

Extent of Gains

The eight individuals collectively earned ₹173.14 crore from insider trades. Bhoovan Singh led with ₹72.03 crore, followed by his mother Amita Soran (₹31.59 crore), his father Amar Jit Singh Soran (₹22.65 crore), and his aunt Anita (₹3.09 crore). Narender Kumar earned ₹34.53 crore, Virender Singh ₹7.04 crore, and Bindu Sharma ₹2.18 crore.

Source of Unpublished Information

The interim order notes that Bhoovan Singh and his family were personally connected with Yogeita S. Mehra, Chief of the Economic Division at CERC, who had attended meetings where unpublished price-sensitive information (UPSI) on the market coupling policy was discussed. Although SEBI has not named Mehra or other CERC officials in the order, documents retrieved from Bhoovan Singh’s devices during searches showed UPSI shared via a WhatsApp group named ‘OTC’, which included Sanjeev Kumar and Narender Kumar.

Investigation Trigger

The investigation was triggered after CERC issued directions on July 23, 2025, to implement Market Coupling under its regulations. The announcement was expected to affect trading volumes, and IEX shares dropped nearly 30% the next day. SEBI’s analysis of trading patterns between July 1 and August 14, 2025, showed unusual trading activity and sharp price declines, prompting a detailed probe.

SEBI’s coordinated searches between September 18–20, 2025, across multiple locations seized digital evidence and recorded statements. The regulator stated that the investigation may extend to additional individuals. Varshney said the interim order is aimed at impounding ill-got profits and that a comprehensive inquiry into insider trading and related violations is ongoing.

SEBI underscored that such misuse of confidential information creates an unfair market, putting ordinary investors at a disadvantage and exposing them to financial risks.

Conclusion

This case highlights the critical role of regulatory oversight in maintaining market integrity. SEBI’s swift action not only curtails unfair gains but also reinforces the importance of transparency and equal access to information in India’s financial markets.