Wed Sep 25 09:54:36 UTC 2024: ## Indian Energy Exchange Stock Plunges on Market Coupling Plans

**Mumbai, September 25, 2023:** The Indian Energy Exchange (IEX) stock tumbled over 4 percent today, extending losses for the second consecutive session, following the government’s reaffirmed commitment to implement market coupling.

Market coupling, which aims to create a uniform market clearing price for electricity traded across various power exchanges in India, has raised concerns among market participants. The move, anticipated to be implemented by the end of this fiscal year or early FY26, will potentially render power exchanges into mere platforms for bid aggregation and dispatch, eliminating the current price discovery mechanism.

The Ministry of Power’s decision comes on the heels of recent media reports highlighting their dedication to the market coupling proposal. The final timeline will be determined by the Central Electricity Regulatory Commission.

Adding to the pressure on IEX shares, the stock has been included in the National Stock Exchange (NSE) futures and options (F&O) ban list. This action, taken when open interest (OI) in a stock exceeds 95 percent of market-wide position limits (MWPL), prohibits further trading in futures and options contracts for the stock.

IEX shares were trading down over 4 percent at Rs 202.20 at 12:18 pm on NSE. Despite the recent decline, the stock has shown strong performance this year, rallying 20 percent so far, slightly outperforming the Nifty’s 19 percent return.

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