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IEX Shares Hit Circuit Low as Market Coupling Clears Regulatory Hurdle


Updated: July 24, 2025 09:42

Image Source : Outlook Money
Indian Energy Exchange Ltd (IEX) shares plunged 10 percent on July 24, hitting the lower circuit at Rs 169.10, after the Central Electricity Regulatory Commission (CERC) approved the phased rollout of market coupling for the Day-Ahead Market (DAM) starting January 2026.
 
Key Highlights
 
- Market coupling aims to unify price discovery across all power exchanges by aggregating buy and sell bids and clearing them centrally.
 
- The move threatens IEX’s dominant 85 percent market share in the spot electricity market, potentially shifting volumes to rival platforms.
 
- CERC’s decision follows consultations with Grid India and other stakeholders, with Grid India also tasked with developing software and conducting pilot runs for future coupling phases.
 
- Investors reacted sharply, fearing erosion of IEX’s pricing advantage and business moat.
 
- The announcement comes ahead of IEX’s Q1FY26 earnings, adding to market uncertainty.
 
Sources: Economic Times, CNBC-TV18, Reuters, Outlook Money.

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