IEX shares tumble 8% as APTEL defers market coupling hearing to Jan 19

IEX shares fell nearly 8% after APTEL deferred the hearing on CERC's market coupling order to January 19, prolonging regulatory uncertainty for power exchanges

IEX share price today

  Uncertainty surrounding the implementation of market coupling regulations heavily weighed on the Indian Energy Exchange (IEX) share price today, with the Electricity Appellate Tribunal (APTEL) deferring the hearing to January 19, 2026.

 

Earlier, investors were hoping that APTEL would deliver its final verdict in the case today, clarifying whether Central Electricity Regulatory Commission’s (CERC’s) July 2025 order on market coupling is to be implemented or not.

 

With uncertainty lingering, IEX shares plummeted 7.8 per cent on the BSE in the intraday trade on Friday, January 8, 2026, hitting an intraday low of ₹138.35 per share. Around 17.12 million shares have changed hands on the stock exchange, so far in the session, as against a two-week average volume of 1.5 million shares.

 

Today’s decline pushed IEX shares closer to their 52-week low of ₹130.35 per share.

 

Why are IEX shares falling today?

IEX shares were reeling under heavy selling pressure on Friday amid regulatory uncertainty and a delay in legal relief.

 

The exchange has filed a plea in APTEL, urging the Tribunal to quash CERC’s July 2025 order which called for a ‘suo-moto’ implementation of market coupling of the Day-Ahead Market (DAM) of the power exchanges by January 2026.

 

The counsel for CERC, too, had told the APTEL during the January 6, 2026 hearing that they were ready to take instructions from the tribunal to withdraw its July 2025 order.

 

However, in a surprising turn of events earlier today, CERC issued a corrigendum (a formal correction) just ahead of the hearing, stating that its July 2025 publication should be read as a "direction" rather than an "order."

 

Further, as per reports, the CERC counsel also sought additional time from the tribunal to provide a definitive response on whether the July 23, 2025, market coupling order can be withdrawn or revised.

 

In this backdrop, the APTEL deferred the hearing to January 19, 2026. It also directed IEX to file an affidavit by this date clarifying its position on the proposed amendments to the coupling norms.

 

“We have observed a lot of theatrics in how the regulations were brought in... There were allegations that the rules were framed to benefit specific officers.... We can conduct an inquiry if any procedural irregularities or impropriety were found within the CERC...,” the Tribunal reportedly observed.

 

IEX vs CERC: What is the market coupling case?

 

Currently, each power exchange (IEX, Power Exchange India Limited (PXIL), and Hindustan Power Exchange Limited (HPX)) discovers its own price for electricity. CERC, however, has proposed that power exchanges may act as the Market Coupling Operator (MCO) on a rotational basis, with Grid-India being the fourth MCO for backup and audit purposes.

 

It proposed that the MCO set one uniform price for the entire country based on aggregate bids.

 

In August, 2025, however, IEX appealed to APTEL for a review, arguing that the CERC circular had ulterior motives, and had used incorrect methodology (regulations). IEX also pointed out that the price benefits from coupling are negligible.

 

Meanwhile, market regulator Sebi (Securities and Exchange Board of India), too, issued an interim order in October 2025, prima facie finding potential insider trading by certain entities and a few officials of the CERC pertaining to trade of IEX shares exploiting UPSI (decision on coupling).

 

IEX shares outlook: JM Financial view

According to analysts at JM Financial Institutional Securities, the coupling is not likely before December 2027 in light of the implementation challenges.

 

“Given IEX’s technological prowess and organisational capabilities, we estimate its market share may taper from 75 per cent in FY28 to 60 per cent in FY30. New initiatives can increase the share of short-term power from over 7 per cent presently to over 10 per cent by FY30,” it said.

 

The brokerage maintained its ‘Add’ rating on IEX stock, valuing it at 35x FY30E EPS with a share price target of ₹160.

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