Shares of the Indian Energy Exchange (IEX) witnessed a significant sell-off, closing nearly 7% lower at ₹139.80 on Friday. The sharp decline followed a dual trigger: the exchange's clarification regarding reports on launching gas futures and the ongoing hearing by the Electricity Appellate Tribunal (APTEL) concerning market coupling norms.
Clarification on Gas Futures Sparks Confusion
The stock's volatility began after the BSE sought clarification from IEX regarding a news report. The report suggested that the National Stock Exchange (NSE) and the India Gas Exchange (IGX) were in discussions to launch India's first natural gas futures contract.
In its formal filing, IEX categorically dismissed any direct involvement. The company clarified that IGX is only an associate company with its own independent management and board. IEX emphasized it has no role in IGX's day-to-day operations and is not privy to any such developments reported in the article. "The Company is not aware of any such development... and is not in a position to comment on the same," the filing stated.
APTEL Hearing on Market Coupling Adds Pressure
Simultaneously, investor sentiment was weighed down by proceedings at the APTEL. The tribunal is hearing the crucial market coupling case, which could reshape power trading in India. APTEL has scheduled the next hearing for January 19.
Ahead of this hearing, the Central Electricity Regulatory Commission (CERC) issued a circular clarifying that its July 2025 issuance on the matter should be seen as a "direction" and not an "order." During the hearing, APTEL sought an explanation from CERC regarding the withdrawal of the market coupling order. The CERC's counsel requested more time to clarify its stance.
APTEL remarked that the regulator must function independently, free from uncertainty. The tribunal also indicated it would initiate an enquiry if any irregularities were found within the regulator. IEX informed APTEL that the CERC had issued a corrigendum converting its order into a direction, calling it unusual for an order to be applied retrospectively while the matter is sub-judice.
Stock Performance and Market Reaction
The trading session on Friday was marked by high volatility for IEX. The stock had opened higher, even climbing to an intraday peak of ₹159.80. However, it parsed all gains and plummeted over 11% from that high by the close, reflecting heavy selling pressure.
IEX shares are listed on both the BSE and NSE. The stock had touched a 52-week high of ₹215.40 on June 9, 2025, and a 52-week low of ₹130.35 on August 7, 2025. The day's events underscore the sensitivity of energy market stocks to regulatory developments and clarifications regarding business scope.
