IEX share jumps 12% after APTEL flags possible rollback of CERC order

IEX Share Price: Shares of Indian Energy Exchange (IEX) jumped 12 per cent and hit the intraday high of Rs 153.43 on Tuesday after a key development in the long-running market coupling case involving the Central Electricity Regulatory Commission (CERC).

The stock rallied after comments made during a hearing at the Appellate Tribunal for Electricity (APTEL) suggested that the contentious CERC order dated July 23 could be withdrawn. The development sharply improved investor sentiment, though the legal battle is far from over.

What happened at APTEL

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During the hearing, APTEL made strong observations on the market coupling regulations. The tribunal said it was informed that the coupling order appeared to have been framed to benefit certain officials. It also remarked that there was “too much theatrics” in the way the rules were drafted, which it described as a matter of concern.

APTEL noted that regulation could have been carried out by CERC in a calm and transparent manner.

CERC lawyer’s submissions

Appearing before APTEL, CERC’s counsel said the commission would need to consult internally and seek directions on the issue of withdrawing the July 23 order. The lawyer added that the intent behind the coupling order was to make it more consultative, fair and transparent.

CERC told the tribunal that the issue would be taken up with its members and that APTEL would be informed after directions were received. CERC is scheduled to make detailed arguments on Friday.

In a sharp exchange, the tribunal indicated that the matter was moving towards a climax and remarked that regulations could be drafted and implemented directly, hinting at procedural concerns.

IEX Share

The comments triggered an immediate reaction in the stock market. IEX shares surged nearly 12 per cent to hit an intraday high of Rs 153.43. Market participants viewed the possible withdrawal of the order as a positive signal for the company, as it could ease regulatory risks around its core business.

At the time of writing this report, IEX share price stood at Rs 145.62, up Rs 11.24, or 8.36 per cent, for the day.