Indian Energy Exchange Ltd.IEX₹132.32 -29.58%

Shares of Indian Energy Exchange Ltd. dropped by 28% on Thursday, July 24, 2025, following the approval of power coupling in the Day-Ahead Market (DAM) by the Central Electricity Regulatory Commission (CERC). The sharp decline in IEX’s stock came after reports revealed that power coupling would be implemented as part of the first phase of a new regulatory framework, with the system expected to be operational by January 2026.

What is Power Coupling?

Power coupling is a system where the buy and sell bids from all power exchanges in India will be aggregated to create a single market clearing price (MCP). This means that multiple exchanges will match bids and offer one unified price for electricity traded across platforms. The goal is to improve efficiency and create price uniformity across exchanges.

Under the new system, different exchanges, including IEX, will take turns acting as the Market Coupling Operators (MCOs) in a round-robin arrangement. The initial phase of this market restructuring will make exchanges like IEX platforms for receiving bids and dispatching power, with price discovery being handled collectively.

Impact on IEX

The approval of market coupling raised concerns among IEX investors, as it is expected to diminish the exchange’s influence over price discovery. Currently, IEX plays a significant role in determining electricity prices in India. However, with power coupling, the process will be more decentralized, and IEX may lose its dominant position in the market.

This has led to a sharp decline in IEX shares, which hit the lower circuit limit of ₹131.50. 

Note: The stock price mentioned is as of 3:30 PM.

Disclaimer

Investments in securities market are subject to market risks, read all the related documents carefully before investing. This is for informational purposes and should not be considered as recommendations.

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