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IEX shares ended more than 8% higher after a turn in its legal battle with the power regulator over market coupling.
The rally came after Central Electricity Regulatory Commission (CERC) told the Electricity Appellate Tribunal (APTEL) that it is willing to take instructions to withdraw its July 2025 order. That order had earlier triggered a near 30% crash in IEX’s stock.
Context: in July 2025, CERC approved market coupling for India’s power markets. Till now, electricity prices were discovered separately on each exchange, with IEX dominating price discovery and controlling nearly 85% of the spot market.
Market coupling changes that. Under this system, all buy and sell orders from every power exchange are pooled together and matched centrally, leading to one uniform electricity price, regardless of the platform.
Why IEX opposed it: for the company, market coupling hits its biggest strength. If prices are discovered centrally, traders no longer need to come specifically to IEX. Volumes can shift to smaller exchanges, and IEX risks losing market share without any clear upside.
What the tribunal and regulator said: APTEL came down hard on how the market coupling rules were introduced, saying regulation should be quiet & professional.
CERC told APTEL it wants to make the market coupling process more consultative, fair, and transparent. The regulator said it will consult internally and seek instructions on whether to withdraw the July 2025 order.
APTEL has set January 9 as the next hearing date and said the case can be closed immediately if CERC withdraws the order.
Now, the regulator stepping back has given IEX some much-needed breathing room.
