SEBI Uncovers Rs 173 Crore Insider Trading Case In IEX Shares, Bars Eight Individuals

The Securities and Exchange Board of India (SEBI) has unearthed a Rs 173 crore insider trading case involving shares of the Indian Energy Exchange (IEX). This marks one of SEBI's largest enforcement actions in an insider trading investigation. Following a swift and focused probe, SEBI has barred eight individuals from accessing the securities market until further notice. The individuals named in the order are Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar. SEBI's investigation revealed that confidential information from meetings of the Central Electricity Regulatory Commission specifically related to policy decisions on market coupling was leaked. This material non-public information was then allegedly used by the individuals to trade in IEX shares, resulting in substantial unlawful gains. The irregular trading patterns in IEX shares raised red flags and prompted SEBI to initiate a deeper probe. Acting on specific intelligence, SEBI secured authorisation from the Honourable Special Court and conducted search and seizure operations from Sept. 18 to 20, across multiple locations linked to the accused. During these operations, digital evidence was seized, and statements were recorded. "The thoughtful modus operandi of the noticees involved sharing of crucial information relating to regulatory actions emanating from a regulator, which was bound to have a significant impact on the listed securities of IEX," SEBI stated in its order. SEBI also noted that the misuse of such sensitive information undermines market fairness, creates an information imbalance, and exposes ordinary investors to unwarranted financial risks. A copy of the order has been sent to CERC for necessary action.