Eight individuals exploited insider tips to pocket ₹173 crore from trades in Indian Energy Exchange (IEX) shares, an amount nearly 1.5 times the company’s quarterly profit, according to a Sebi order that lifts the lid on one of India’s most brazen market manipulation cases.
The regulator has barred eight individuals from the securities market for insider trading that yielded them ₹173.14 crore-roughly 1.5 times IEX’s Q1 FY26 net profit of ₹117 crore.
The profits stemmed from advance access to confidential CERC discussions on a market coupling policy that was expected to slash trading volumes on IEX. When the policy was announced on July 23, IEX shares crashed nearly 30% the next day.
According to Sebi, Bhoovan Singh-a majority shareholder in CERC-regulated GNA Energy-used his connections to obtain unpublished price-sensitive information (UPSI) from Yogeita S. Mehra, Chief of Economic Division at CERC. Singh then executed trades across accounts belonging to his family and associates, including the company’s CEO, Sanjeev Kumar.
The regulator revealed Singh earned ₹72.03 crore himself, while his parents and other relatives made crores more. Sebi seized digital evidence from Singh’s devices and WhatsApp group ‘OTC’, where the UPSI was allegedly shared.
The eight accused-Singh, his family members, and associates-have been barred from market access, their bank accounts restricted, and illegal gains ordered to be held in fixed deposits under Sebi’s lien. A broader probe is underway, with more action expected.
Sebi whole-time member Kamlesh Chandra Varshney said, “The conduct… created information asymmetry and harmed market integrity.”